Bill C-31: A second Act to implement certain provisions of the budget tabled in Parliament on November 4, 2025

Short Title Short title 1 This Act may be cited as the Budget 2025 Implementation Act, No. 2 . PART 1 Amendments to the Income Tax Act and Other Legislation R.S., c. 1 (5th Supp.) Income Tax Act 2 Paragraph 6(1)(e.1) of the Income Tax Act is replaced by the following: Group sickness or accident insurance plans (e.1) the total of all amounts contributed in the year in respect of the taxpayer by the taxpayer’s employer to a group sickness or accident insurance plan ( including a plan that is administered or provided by an employee life and health trust ), except to the extent that the contributions are attributable to benefits under the plan that, if received by the taxpayer, would be included in the taxpayer’s income under paragraph (f) in the year the benefits are received if that paragraph were read without regard to its subparagraph (v); 3 (1) The portion of paragraph 8(1)(e) of the Act after subparagraph (ii) is replaced by the following:   to the extent that the taxpayer has not been reimbursed and is not entitled to be reimbursed in respect thereof and has not received and is not entitled to receive an allowance in respect thereof the inclusion of which is not required under this Act in computing the taxpayer’s income ; (2) The portion of paragraph 8(1)(g) of the Act after subparagraph (ii) is replaced by the following: amounts so disbursed by the taxpayer in the year to the extent that the taxpayer has not been reimbursed and is not entitled to be reimbursed in respect thereof and has not received and is not entitled to receive an allowance in respect thereof the inclusion of which is not required under the Act in computing the taxpayer’s income ; 4 (1) Paragraph 12(1)(z.6) of the French version of the Act is replaced by the following: Remboursement z.6) la somme reçue par le contribuable au cours de l’année à titre de remboursement d’un montant qui a été déduit en application de l’alinéa 20(1)vv) dans le calcul du revenu pour une année d’imposition; (2) Paragraph 12(13)(b) of the Act is amended by adding the following after subparagraph (i): (i.1) if a taxpayer is a trust, a deemed disposition by the taxpayer by application of paragraph 104(4)(a), (3) Subsection (2) applies to the period throughout which a flipped property of a taxpayer is owned or held by the taxpayer in respect of a disposition that occurs after 2022. 5 (1) Subsection 13(7) of the Act is amended by adding the following after paragraph (d): (d.1) if a taxpayer is subject to a manufacturing building recapture event in respect of a building in a taxation year, the taxpayer is deemed to have (i) disposed of the building at the time of the event for proceeds of disposition equal to the amount that would have been the undepreciated capital cost of the building if (A) the building had never qualified for the deduction under subparagraph 1100(1)(a.1)(i) of the Income Tax Regulations , (B) the building were the only property of the prescribed class to which it would have belonged, and (C) the taxpayer had deducted the maximum amount allowed under paragraph 20(1)(a) in respect of that class for all prior taxation years, (ii) reacquired the building as property of a separate prescribed class immediately after that time at a cost equal to the amount that was the capital cost to the taxpayer of the building immediately before that time, and (iii) deducted, in computing income for taxation years that ended before that time, an amount under paragraph 20(1)(a) in respect of the building equal to the amount determined under clause (i)(C); (2) The description of F in the definition fraction non amortie du coût en capital in subsection 13(21) of the French version of the Act is replaced by the following: F le total des sommes dont chacune est une somme à l’égard d’ une disposition, avant ce moment, d’un bien (sauf un avoir forestier ) de cette catégorie dont le contribuable est propriétaire, et qui correspond à la moins élevée des sommes suivantes : a) le produit de disposition du bien moins les dépenses engagées ou effectuées en vue de la disposition, b) le coût en capital que ce contribuable a supporté pour le bien ; (3) Subsection 13(21) of the Act is amended by adding the following in alphabetical order: manufacturing building recapture event  means an event in respect of a building of a taxpayer if (a) in a prior taxation year, the taxpayer deducted an amount in respect of the building under paragraph 20(1)(a) pursuant to subparagraph 1100(1)(a.1)(i) of the Income Tax Regulations , and (b) in a taxation year that begins within 10 calendar years of the end of the prior taxation year, the taxpayer, or a lessee of the taxpayer, began to use more than 10% of the floor space of the building for one or more income-earning purposes other than the manufacturing or processing (as defined in subsection 1104(9) of the Income Tax Regulations ) in Canada of goods for sale or lease; ( événement de récupération relatif à un bâtiment de fabrication ) (4) Subsections (1) and (3) are deemed to have come into force on November 4, 2025. 6 The portion of paragraph 56(4.1)(c) of the French version of the Act before subparagraph (i) is replaced by the following: c) le revenu du particulier donné pour une année d’imposition provenant du bien visé à l’alinéa b), qui se rapporte à une ou plusieurs périodes de l’année tout au long desquelles le créancier ou la fiducie créancière réside au Canada et le créancier ou le cédant initial a un lien de dépendance avec le particulier donné, est considéré : 7 (1) Subparagraph 60(j)(i) of the Act is replaced by the following:   (i) a benefit (other than any amount in respect of the benefit that is deducted in computing the taxable income of the taxpayer for a taxation year because of subparagraph 110(1)(f)(i) or a benefit that is part of a series of periodic payments) payable out of or under a pension plan that is not a registered pension plan, included in computing the income of the taxpayer for the year because of (A) subparagraph 56(1)(a)(i) as a superannuation or pension benefit attributable to services rendered by the taxpayer or a spouse or common-law partner or former spouse or common-law partner of the taxpayer in a period throughout which that person was not resident in Canada, or (B) paragraph 6(1)(g) as a benefit paid from a foreign plan as defined in subsection 6804(1) of the Income Tax Regulations under which pension credits described in subsection 8308.1(2) of the Regulations were reported in respect of the taxpayer, or a spouse or common-law partner or former spouse or common-law partner of the taxpayer, for all years of service rendered under the plan by the taxpayer or a spouse or common-law partner, or (2) Subsection (1) is deemed to have come into force on January 1, 2024. 8 Subsection 62(2) of the French version of the Act is replaced by the following: Frais de déménagement d’étudiants (2) Un contribuable peut déduire dans le calcul de son revenu pour une année d’imposition la somme qu’il pourrait déduire en application du paragraphe (1) s’il n’était pas tenu compte du sous-alinéa a)(i) de la définition de réinstallation admissible au paragraphe 248(1) et si l’alinéa c) de cette définition était remplacé par ce qui suit : « c) sauf si le contribuable est absent du Canada mais y réside, l’ancienne résidence ou la nouvelle résidence est située au Canada ou les deux y sont situées ; » 9 (1) The portion of paragraph (a) of the definition Canadian exploration expense in subsection 66.1(6) of the Act before subparagraph (i) is replaced by the following: (a) any expense incurred by the taxpayer (other than an expense incurred in drilling or completing an oil or gas well or in building a temporary access road to, or preparing a site in respect of, any such well) for the purpose of determining the existence, location, extent or inherent natural qualities of an accumulation of petroleum or natural gas (other than a mineral resource) in Canada, including such an expense that is (2) The portion of paragraph (f) of the definition Canadian exploration expense in subsection 66.1(6) of the Act before subparagraph (i) is replaced by the following: (f) any expense incurred by the taxpayer (other than an expense incurred in drilling or completing an oil or gas well or in building a temporary access road to, or preparing a site in respect of, any such well) for the purpose of determining the existence, location, extent or inherent natural qualities of a mineral resource in Canada including such an expense for environmental studies or community consultations (including, notwithstanding subparagraph (v), studies or consultations that are undertaken to obtain a right, license or privilege for the purpose of determining the existence, location, extent or inherent natural qualities of a mineral resource in Canada) and any expense incurred in the course of (3) Subsections (1) and (2) are deemed to have come into force on November 4, 2025. 10 Clause 66.7(10)(j)(ii)(B) of the French version of the Act is replaced by the following: (B) ce que serait sa part du revenu de la société de personnes, pour l’exercice de celle-ci se terminant au cours de l’année, qu’il est raisonnable de considérer comme attribuable à la production tirée de l’avoir, si elle était déterminée en fonction de la part, exprimée en pourcentage, visée au sous-alinéa (i). 11 (1) Paragraph (i) of the description of B in the definition forgiven amount in subsection 80(1) of the Act is replaced by the following: (i) if the debtor is an individual (other than a partnership or trust) who is a bankrupt at that time, the principal amount of the obligation, (2) Subsection (1) applies in respect of bankruptcy proceedings of corporations that are commenced on or after April 16, 2024. It also applies in respect of bankruptcy proceedings of partnerships and trusts that are commenced on or after August 12, 2024. 12 (1) Paragraph 87(2)(j.6) of the Act is replaced by the following: Continuing corporation (j.6) for the purposes of paragraphs 12(1)(t) and (x), subsections 12(2.2) and 13(7.1), (7.4) and (24), paragraphs 13(27)(b) and (28)(c), subsections 13(29) and 18(9.1), paragraphs 20(1)(e), (e.1), (v) and (hh), sections 20.1 and 32, paragraph 37(1)(c), subsection 39(13), subparagraphs 53(2)(c)(vi) and (h)(ii), paragraph 53(2)(s), subsections 53(2.1), 66(11.4), 66.7(11) and 84.1(2.31) and (2.32), sections 110.61 and 110.62, subsections 127(10.2), (10.31) and (10.32) and 129(1.3) to (1.32) , section 139.1, subsection 152(4.3), the determination of D in the definition undepreciated capital cost in subsection 13(21), the determination of L in the definition cumulative Canadian exploration expense in subsection 66.1(6) and the definitions qualifying business transfer and qualifying cooperative conversion in subsection 248(1), the new corporation is deemed to be the same corporation as, and a continuation of, each predecessor corporation; (2) Paragraph 87(2)(ii) of the Act is replaced by the following: Public corporation (ii) where a predecessor corporation was a public corporation immediately before the amalgamation, the new corporation shall be deemed to have been a public corporation at the commencement of its first taxation year unless (i) after the last time a class of shares of the capital stock of the predecessor corporation became listed on a designated stock exchange in Canada and before the amalgamation, an election or designation was made in respect of the predecessor corporation under paragraph (c) of the definition public corporation in subsection 89(1), (ii) immediately before the amalgamation, the predecessor corporation was a subsidiary wholly-owned corporation of another corporation (other than a public corporation) (in this paragraph referred to as the “parent”), and (iii) the amalgamation was an amalgamation of the parent and the predecessor corporation to which subsection (11) applies; (3) Subsection (1) applies to taxation years that begin on or after November 4, 2025. (4) Subsection (2) applies to amalgamations that occur after the day on which this Act receives royal assent. 13 (1) Section 91 of the Act is amended by adding the following after subsection (4): Foreign accrual tax — DMTT regime (4.01) For the purpose of the definition foreign accrual tax in subsection 95(1), a portion of income or profits tax paid by a particular foreign affiliate, or a shareholder affiliate (within the meaning assigned by subparagraph (a)(ii) of that definition), of a taxpayer to the government of a country under a domestic minimum top-up tax regime (as defined in subsection 5907(1) of the Income Tax Regulations ) may reasonably be regarded as applicable to an amount included under subsection (1) in computing the taxpayer’s income for a taxation year of the taxpayer in respect of the particular affiliate only if that portion can reasonably be considered to be in respect of income or profits, as determined under that tax regime, of the particular affiliate or the shareholder affiliate, as the case may be, that are derived from an activity the income, profit or gains from which are included in the particular affiliate’s foreign accrual property income that gives rise to the amount included under subsection (1). Interpretation — DMTT regime (4.02) For the purpose of subsection (4.01), the income or profits tax payable under a domestic minimum top-up tax regime (as defined in subsection 5907(1) of the Income Tax Regulations ) for a fiscal year (as defined in subsection 5907(1) of the Income Tax Regulations ) that can reasonably be considered to be in respect of the income or profits, as determined under that tax regime, of a foreign affiliate of a taxpayer is the amount determined under subsection 5907(1.192) of the Income Tax Regulations . Exception — DMTT regime (4.03) Despite any other provision of this Act, if a particular amount of income or profits tax payable under a domestic minimum top-up tax regime (as defined in subsection 5907(1) of the Income Tax Regulations ) of a country other than Canada was determined taking into account any tax imposed under this Act (other than any tax imposed under Part XIII), no amount paid in respect of that particular amount is to be included in computing the foreign accrual tax applicable to an amount included under subsection (1) in computing a taxpayer’s income for any taxation year of the taxpayer. (2) Subsection (1) is deemed to have come into force on December 31, 2023. 14 (1) The portion of subsection 104(5.8) of the Act before paragraph (a) is replaced by the following: Trust transfers (5.8) Where a trust (in this subsection referred to as the “transferor trust”) transfers at a particular time a capital property, land included in inventory, Canadian resource property or foreign resource property to another trust in circumstances in which subsection 107(2) or 107.4(3) or paragraph (f) of the definition disposition in subsection 248(1) applies, or to a taxpayer that is a beneficiary under the transferor trust in circumstances in which subsection 107(2) applies if an interest, or for civil law, a right, in the taxpayer is held directly or indirectly by another trust at the particular time (in this subsection the other trust is, in either case, referred to as the “transferee trust”) , (2) Subsection (1) applies in respect of transfers of property that occur on or after November 4, 2025. 15 (1) Paragraph 108(2)(c) of the Act is replaced by the following: (c) the fair market value of the property of the trust at the end of 1993 was primarily attributable to real property or an interest in real property — or to immovables or a real right in immovables — and the trust was a unit trust throughout any calendar year that ended before 1994 and the fair market value of the property of the trust at the particular time is primarily attributable to property described in paragraph (a) or subparagraph (c)(i) of the definition qualified investment in subsection 207.01(1) , real property or an interest in real property — or immovables or a real right in immovables — or any combination of those properties. (2) Subsection (1) comes into force on January 1, 2027. 16 (1) Subsection 110(1.31) of the Act is replaced by the following: Annual vesting limit (1.31) If this subsection applies to a taxpayer in respect of an agreement, the securities to be sold or issued under the agreement in respect of which an amount could be deducted in computing the taxable income of the taxpayer, determined without reference to this subsection, under paragraph (1)(d) (referred to in this subsection as “specified securities” ), for each vesting year of those specified securities, are deemed to be non-qualified securities for the purposes of this section in the proportion determined by the formula A ÷ B where A is the amount determined by the formula C + D − $200,000 where C is the total of all amounts each of which is the fair market value at the relevant time of each specified security under the agreement that has that same vesting year, and D is the lesser of (a) $200,000, and (b) the total of all amounts each of which is an amount determined for C in respect of specified securities that have that same vesting year under agreements (other than the agreement) entered into at or before the relevant time with the particular qualifying person referred to in subsection (1.3) (or another qualifying person that does not deal at arm’s length with the particular qualifying person), other than (i) old securities (within the meaning of subsection 7(1.4)), (ii) securities where the right to acquire those securities is an old right (within the meaning of subsection (1.7)), and (iii) securities in respect of which the right to acquire those securities has expired, or has been cancelled, before the relevant time; and B is the amount determined for C. (2) Subsection (1) applies in respect of agreements to sell or issue securities entered into after June 2021. However, subsection (1) does not apply in respect of rights under an agreement to which subsection 7(1.4) of the Act applies that are new options (within the meaning of subsection 7(1.4)) in respect of which an exchanged option (within the meaning of subsection 7(1.4) and on the assumption that paragraph 7(1.4)(e) of the Act applies for those purposes) was issued before July 2021. 17 The portion of paragraph (d) of the definition action admissible de petite entreprise in subsection 110.6(1) of the French version of the Act before subparagraph (i) is replaced by the following: d) dans le cas où, pour une période donnée comprise dans la période de 24 mois se terminant au moment donné, la totalité, ou presque, de la juste valeur marchande de l’actif d’une société donnée qui est la société ou une autre société rattachée à celle-ci n’est attribuable ni à des éléments visés au sous-alinéa c)(i), ni à des actions ou dettes de sociétés visées à la division c)(ii)(B), ni à une combinaison de tels éléments, actions ou dettes, le passage « plus de 50 % », à cette division, est remplacé, pour cette période donnée, par le passage « la totalité, ou presque, » quant à chacune des autres sociétés rattachées à la société donnée; pour l’application du présent alinéa, une société n’est rattachée à une autre que si, à la fois : 18 Subsection 115(2.3) of the Act is repealed. 19 Subsection 117.1(1) of the French version of the Act is replaced by the following: Ajustement annuel 117.1 (1) Chaque somme déterminée relativement à l’impôt à payer en vertu de la présente partie ou de la partie I.2 pour une année d’imposition doit être rajustée pour que la somme applicable à l’année en vertu de la disposition pour laquelle elle est prise en compte soit égale au total des montants suivants  : a) le montant qui, compte non tenu du paragraphe (3), serait la somme applicable à l’année précédente en vertu de la disposition pertinente; b) le produit des montants suivants : (i) le montant visé à l’alinéa a), (ii) le montant rajusté de la manière prescrite et arrêté à la troisième décimale, les résultats ayant au moins cinq en quatrième décimale étant arrondis à la troisième décimale supérieure, obtenu par la formule suivante : (A ÷ B) − 1 où : A représente l’indice des prix à la consommation pour la période de 12 mois se terminant le 30 septembre précédant l’année, B l’indice des prix à la consommation pour la période de douze mois qui précède la période visée à l’élément A. 20 (1) Subparagraph (a)(iii.1) of the definition revenu de pension in subsection 118(7) of the French version of the Act is replaced by the following: (iii.1) à titre de paiement (sauf le versement visé au sous-alinéa (i)) prévu par la disposition à cotisations déterminées , au sens du paragraphe 147.1(1), d’un régime de pension agréé ou dans le cadre d’un régime de pension déterminé, (2) Subsection (1) applies to the 2019 and subsequent taxation years. 21 (1) The portion of paragraph (a) of the definition excluded amount in subsection 120.4(1) of the Act before subparagraph (i) is replaced by the following: (a) if the individual has not attained the age of 24 years before the year, is from a property ( or from property substituted for that property ) that was acquired by, or for the benefit of, the individual as a consequence of the death of a person who is (2) Paragraph (b) of the definition excluded amount in subsection 120.4(1) of the Act is replaced by the following: (b) is from a property acquired by the individual under a transfer described in subsection 160(4) or from property substituted for that property ; (3) Subsections (1) and (2) are deemed to have come into force on August 12, 2024. 22 (1) Paragraph (a) of the definition qualified REIT property in subsection 122.1(1) of the Act is replaced by the following: (a) a real or immovable property that is capital property, an eligible resale property, an indebtedness of a Canadian corporation represented by a bankers’ acceptance, a property described in paragraph (a) or subparagraph (c)(i) of the definition qualified investment in subsection 207.01(1) or a deposit with a credit union; (2) Paragraph (d) of the definition real estate investment trust in subsection 122.1(1) of the Act is replaced by the following: (d) at each time in the taxation year an amount, that is equal to 75% or more of the equity value of the trust at that time, is the amount that is the total fair market value of all properties held by the trust each of which is a real or immovable property that is capital property, an eligible resale property, an indebtedness of a Canadian corporation represented by a bankers’ acceptance, a property described in paragraph (a) or subparagraph (c)(i) of the definition qualified investment in subsection 207.01(1) or a deposit with a credit union; and (3) Subsections (1) and (2) come into force on January 1, 2027. 23 Paragraph (e) of the definition eligible individual in section 122.6 of the Act is amended by adding “or” at the end of subparagraph (iii) and by repealing subparagraph (iv). 24 (1) The portion of subsection 122.8(4) of the Act before the formula is replaced by the following: Deemed payment on account of tax (4) An eligible individual in relation to a month specified for a taxation year who files, on or before October 30, 2026 , a return of income for the taxation year is deemed to have paid, during the specified month, on account of their tax payable under this Part for the taxation year, an amount equal to the amount, if any, determined by the formula (2) Section 122.8 of the Act is amended by adding the following after subsection (4.2): End of deemed payment (4.3) Despite any other provision of this Act, the Minister must not determine an amount of a deemed payment under subsection (4) on account of an eligible individual’s tax payable under this Part for a taxation year if the eligible individual makes an application for a determination in respect of the year after October 30, 2026. (3) Subsections (1) and (2) are deemed to have come into force on November 4, 2025. 25 (1) Sub-subclause (A)(III)2 of the description of B in subparagraph 122.91(2)(a)(i) of the Act is replaced by the following: 2 the total of all amounts each of which is an amount payable to the individual under subsection 22(1), 22.1(1) , 23(1), 152.04(1), 152.041(1) or 152.05(1) of the Employment Insurance Act in the preceding taxation year, and (2) Subsection (1) comes into force on the day on which Division 12 of Part 5 of the Fall Economic Statement Implementation Act, 2023 comes into force. 26 (1) Paragraph (b) of the definition qualifying relation in subsection 122.92(1) of the Act is replaced by the following: (b) at any time in the renovation period taxation year, is a parent, grandparent, child, grandchild, brother, sister, aunt, uncle, niece or nephew — or the spouse or common-law partner of one of those individuals — of either the qualifying individual or the cohabiting spouse or common-law partner (as defined in section 122.6) of the qualifying individual. ( proche admissible ) (2) Subsection (1) applies to the 2023 and subsequent taxation years in respect of qualifying expenditures paid after December 31, 2022 for services performed or goods acquired after that date. 27 (1) Section 126 of the Act is amended by adding the following after subsection (2.21): Former resident — reassessment period (2.211) Despite subsections 152(4) to (5), any assessment, reassessment or additional assessment of the tax payable by the individual in respect of the emigration year (within the meaning of subsection (2.21)) may be made by the Minister as is necessary to take into account the deduction under subsection (2.21). (2) Section 126 of the Act is amended by adding the following after subsection (4.13): Exception — DMTT regime (4.14) If a particular amount of income or profits tax payable under a domestic minimum top-up tax regime was determined taking into account any tax imposed under this Act (other than any tax imposed under Part XIII), no amount paid in respect of that particular amount is to be included in computing the taxpayer’s business-income tax or non-business-income tax for any taxation year. (3) Section 126 of the Act is amended by adding the following after subsection (4.6): Business-income tax — DMTT regime (4.7) For the purpose of the definition business-income tax in subsection (7), a portion of income or profits tax paid by a taxpayer to the government of a country other than Canada under a domestic minimum top-up tax regime for a fiscal year can reasonably be regarded as tax in respect of the income of the taxpayer from a business carried on by the taxpayer in a business country (within the meaning of the definition business-income tax in subsection (7)) only if that portion can reasonably be considered to be in respect of income or profits, as determined under that tax regime, of the taxpayer that are derived from an activity the income, profit or gains from which would be included in the taxpayer’s income from a business carried on in the business country. Interpretation — DMTT regime (4.8) For the purposes of subsection (4.7) and paragraph (j) of the definition non-business-income tax in subsection (7), the income or profits tax payable under a domestic minimum top-up tax regime for a fiscal year that can reasonably be considered to be in respect of the income or profits, as determined under that tax regime, of a taxpayer that is a member of a DMTT group for the fiscal year is, (a) if the tax regime determines an amount of income or profits tax payable for the fiscal year in respect of the income or profits of the taxpayer under that regime, the amount so determined; and (b) in any other case, the amount determined by the formula A × B ÷ C where A is the total amount of income or profits tax payable in respect of the DMTT group under that tax regime for the fiscal year, B is the income or profits, as determined under that tax regime, of the taxpayer for the fiscal year, and C is the total of all amounts, each of which is the income or profits, as determined under that tax regime, of a member of the DMTT group for the fiscal year. (4) The definition non-business-income tax in subsection 126(7) of the Act is amended by striking out “or” at the end of paragraph (g), by adding “or” at the end of paragraph (i) and by adding the following after paragraph (i): (j) that is paid to the government of the country under a domestic minimum top-up tax regime for a fiscal year and that cannot reasonably be considered to be in respect of the income or profits, as determined under that tax regime, of the taxpayer. ( impôt sur le revenu ne provenant pas d’une entreprise ) (5) Subsection 126(7) of the Act is amended by adding the following in alphabetical order: DMTT group  has the same meaning as in subsection 5907(1) of the Income Tax Regulations . ( groupe d’ICMN ) domestic minimum top-up tax regime  has the same meaning as in subsection 5907(1) of the Income Tax Regulations . ( régime d’impôt complémentaire minimum national ) fiscal year  has the same meaning as in subsection 5907(1) of the Income Tax Regulations . ( année financière ) (6) Subsections (2) to (5) are deemed to have come into force on December 31, 2023. 28 (1) Paragraph (a) of the definition flow-through mining expenditure in subsection 127(9) of the Act is replaced by the following: (a) that is a Canadian exploration expense incurred by a corporation after March 2025 and before 2028 (including, for greater certainty, an expense that is deemed by subsection 66(12.‍66) to be incurred before 2028) in conducting mining exploration activity from or above the surface of the earth for the purpose of determining the existence, location, extent or inherent natural qualities of a mineral resource described in paragraph (a) or (d) of the definition mineral resource in subsection 248(1), (2) Paragraph (c) of the definition dépense admissible in subsection 127(9) of the French version of the Act is replaced by the following: c) une dépense prescrite que le contribuable a engagée au cours de l’année; (3) The definition qualified expenditure in subsection 127(9) of the Act is amended by adding the following after paragraph (c): (d) an amount that is a clean economy expenditure (as defined in subsection 127.47(1)) in respect of which a clean economy tax credit (as defined in subsection 127.‍47(1)) was claimed by any person, (4) Subsection (1) applies in respect of expenses renounced under a flow-through share agreement entered into on or after November 4, 2025. (5) Subsection (3) is deemed to have come into force on May 4, 2026. 29 (1) Subparagraph (a)(i) of the definition dual-use equipment in subsection 127.44(1) of the Act is replaced by the following: (i) generates electrical energy, heat energy or a combination of electrical and heat energy ( excluding equipment that supports the CCUS project indirectly by way of an electrical utility grid) and (A) more than 50% of either the electrical energy or heat energy that is expected to be produced over the total CCUS project review period, based on the most recent project plan, is expected to directly support one or a combination of (I) a qualified CCUS project, and (II) a qualified clean hydrogen project as defined in subsection 127.48(1), and (B) if the equipment uses or is expected to use fossil fuels, (I) the associated emissions are subject to capture by a qualified CCUS project, or (II) the fossil fuels are used for one or a combination of the following activities: 1 starting up the equipment for no more than 120 hours per startup, and 2 fuelling the equipment for any purpose for no more than 72 hours per calendar year, (2) The portion of the definition qualified concrete storage process in subsection 127.44(1) of the Act before paragraph (a) is replaced by the following: qualified concrete storage process  means a process evaluated against the ISO 14034:2016 standard Environmental management — Environmental technology verification for which a validation statement confirming that at least 60% of the captured carbon that is incorporated into concrete is expected to be mineralized and permanently stored in the concrete has been issued by a professional or organization that (3) Subsection 127.44(9) of the Act is amended by striking out “and” at the end of paragraph (h), by adding “and” at the end of paragraph (i) and by adding the following after paragraph (i): (j) once captured carbon has been stored in dedicated geological storage, if the carbon dioxide is released into the atmosphere for bona fide reasons outside the control of the taxpayer, it is deemed to be used in an eligible use at the time of the release and all subsequent times. (4) Subsections (1) to (3) are deemed to have come into force on January 1, 2022. 30 (1) Subparagraph (d)(ii) of the definition clean technology property in subsection 127.45(1) of the Act is replaced by the following: (ii) described in subparagraph (d)‍(xviii) or (xix) of Class 43.‍1 in Schedule II to the Income Tax Regulations , but excluding equipment that is part of a system that uses any fossil fuel in operation, (2) Paragraph 127.45(5)(a) of the Act is amended by adding the following after subparagraph (ii.1): (ii.2) that is a qualified expenditure (as defined in subsection 127(9)) in respect of which an investment tax credit was deducted by any person, (3) Subsections 127.45(13) and (14) of the Act are replaced by the following: Certain non-arm’s length transfers (13) Subsections (11) and (12) do not apply to a taxpayer that is a taxable Canadian corporation (in this subsection and subsection (14) referred to as the “transferor”) that disposes of a property to another taxable Canadian corporation (in this subsection and subsection (14) referred to as the “purchaser”) related to the transferor if the purchaser acquired the property in circumstances where the property would be clean technology property to the purchaser but for paragraph (b) of the definition clean technology property in subsection (1). Certain non-arm’s length transfers — recapture deferred (14) If a property is disposed of to a purchaser in circumstances described in subsection (13), (a) subsections (11) and (12) do not apply to the transferor in respect of the property after the time of the disposition; and (b) for the purposes of subsections (11) and (12), (i) the purchaser is deemed to have acquired the property, as a clean technology property, on the date the property was acquired by the transferor, (ii) the capital cost to the purchaser of the property on which a clean technology investment tax credit was deducted is deemed to be the amount that was, before that time, the capital cost to the transferor of the property on which the clean technology investment tax credit was deducted, and (iii) the purchaser is deemed to have become entitled to a clean technology investment tax credit in respect of the capital cost referred to in subparagraph (ii) equal to the amount of the transferor’s clean technology investment tax credit in respect of the property. (4) Subsections (1) and (3) apply in respect of property that is acquired and becomes available for use on or after May 4, 2026. (5) Subsection (2) is deemed to have come into force on May 4, 2026. 31 (1) The definitions dual-use hydrogen and ammonia equipment and ineligible use in subsection 127.48(1) of the Act are repealed. (2) The definitions Fuel LCA Model and operating year in subsection 127.48(1) of the Act are replaced by the following: Fuel LCA Model  means the Government of Canada’s Fuel Life Cycle Assessment Model that is published by the Minister of the Environment and referenced in the latest Clean Hydrogen Investment Tax Credit – Carbon Intensity Modelling Guidance Document . ( modèle ACV des combustibles ) operating year  means each cumulative 365-day period, the first of which begins on the first day of the compliance period of a taxpayer’s clean hydrogen project, disregarding any day during which the project does not produce hydrogen . ( année d’exploitation ) (3) The definition clean hydrogen project plan in subsection 127.48(1) of the Act is amended by adding the following after paragraph (c): (c.1) if the project is intended to produce hydrogen from the pyrolysis of eligible hydrocarbons, (i) sets out the project’s expected hydrogen production, and (ii) includes an end-use plan; (4) Paragraph (a) of the definition dual-use electricity and heat equipment in subsection 127.48(1) of the Act is replaced by the following: (a) generates electrical energy, heat energy or a combination of electrical and heat energy and (i) more than 50% of either the electrical energy or heat energy that is expected to be produced over the first 20 years of the project’s operations, based on the most recent clean hydrogen project plan, is expected to support one or a combination of (A) a qualified CCUS project, and (B) a qualified clean hydrogen project, and (ii) if the equipment uses or is expected to use fossil fuels, (A) the associated emissions are subject to capture by a CCUS process, or (B) the fossil fuels are used for one or a combination of the following activities: (I) starting up the equipment for no more than 120 hours per startup, and (II) fuelling the equipment for any purpose for no more than 72 hours per calendar year; or (5) Subparagraphs (c)(i) and (ii) of the definition eligible clean hydrogen property in subsection 127.48(1) of the Act are replaced by the following: (i) that is used to produce all or substantially all hydrogen through electrolysis of water, including electrolysers, rectifiers, purification equipment, water treatment and conditioning equipment and equipment used for compression and storage of hydrogen, (ii) that is used to produce all or substantially all hydrogen from eligible hydrocarbons ( determined without reference to captured carbon ), including pre-reformers, auto-thermal reformers, steam methane reformers, partial oxidation reactors , preheating equipment, syngas coolers, shift reactors, purification equipment, fired heaters, water treatment and conditioning equipment, equipment used for compression and storage of hydrogen, oxygen production equipment and methanators, (6) Subparagraph (c)(ii) of the definition eligible clean hydrogen property in subsection 127.48(1) of the Act, as enacted by subsection (5), is replaced by the following: (ii) that is used to produce all or substantially all hydrogen from eligible hydrocarbons (determined without reference to captured carbon), other than from a pyrolysis process, including pre-reformers, auto-thermal reformers, steam methane reformers, partial oxidation reactors, preheating equipment, syngas coolers, shift reactors, purification equipment, fired heaters, water treatment and conditioning equipment, equipment used for compression and storage of hydrogen, oxygen production equipment and methanators, (ii.1) that is used to produce all or substantially all hydrogen from the pyrolysis of eligible hydrocarbons (determined without reference to any captured carbon or solid carbon that is produced), including pre-heating equipment, purification equipment, fired heaters, equipment used for compression and storage of hydrogen, oxygen production equipment, solid carbon separation equipment and property that is part of a pyrolysis reactor system, (7) Clause (c)(iii)(C) of the definition eligible clean hydrogen property in subsection 127.48(1) of the Act is replaced by the following: (C) oxygen and nitrogen production equipment, or (8) The definition eligible pathway in subsection 127.48(1) of the Act is amended by striking out “or” at the end of paragraph (a), by adding “or” at the end of paragraph (b) and by adding the following after paragraph (b): (c) from the pyrolysis of eligible hydrocarbons. ( méthode admissible ) (9) Clauses (a)(ii)(A) and (B) of the definition eligible power purchase agreement in subsection 127.48(1) of the Act are replaced by the following: (A) the same province as the taxpayer’s clean hydrogen project and is directly connected to the project or to the electricity grid of that province, (B) the exclusive economic zone of Canada and is directly connected to the taxpayer’s clean hydrogen project or to the grid of the province in which the project is located, or (10) Paragraph (b) of the definition eligible power purchase agreement in subsection 127.48(1) of the Act is replaced by the following: (b) grants, or will grant, the taxpayer the sole and exclusive right to the environmental attributes associated with the electricity, as may be evidenced by one or more environmental attribute certificates issued through a provincially designated authority ; and (11) Paragraph (e) of the definition eligible renewable hydrocarbon in subsection 127.48(1) of the Act is replaced by the following: (e) that, if acquired by the taxpayer under an agreement, the agreement grants, or will grant, the taxpayer the sole and exclusive right to the environmental attributes associated with the substance, as may be evidenced by one or more environmental attribute certificates issued through a provincially designated authority ; and (12) The definition excluded property in subsection 127.48(1) of the Act is amended by adding the following after paragraph (a): (a.1) equipment used to generate electrical energy, heat energy or a combination of electrical and heat energy to support the production of hydrogen through electrolysis of water, other than equipment that is used for the generation of heat energy and that is physically and functionally integrated with high-temperature electrolysis equipment; (13) The definition excluded property in subsection 127.48(1) of the Act is amended by adding the following after paragraph (a.1): (a.2) used to produce hydrogen from the pyrolysis of eligible hydrocarbons and is (i) acquired before December 16, 2024, determined without reference to subsection (5), (ii) equipment used for the collection, processing or storage of solid carbon, including dryers, pulverizers, bag collectors, densifiers and pin mixers, or (iii) equipment used for the off-site transmission, transportation or distribution of solid carbon; (14) Subparagraph (b)(i) of the definition qualified clean hydrogen project in subsection 127.48(1) of the Act is replaced by the following: (i) is less than four and is determined in accordance with subsection (6), and (15) The definition qualified clean hydrogen project in subsection 127.48(1) of the Act is amended by striking out “and” at the end of paragraph (b), by adding “and” at the end of paragraph (c) and by adding the following after paragraph (c): (d) if the project is intended to produce hydrogen from the pyrolysis of eligible hydrocarbons, the taxpayer has demonstrated that (i) the expected hydrogen production contained in the taxpayer’s most recent clean hydrogen project plan can reasonably be expected to be achieved based on the project design, (ii) the expected hydrogen use percentage set out in the end-use plan is 90% or greater, (iii) the project is expected to consume less than 50% of the hydrogen produced during the compliance period, and (iv) the expectations set out in the end-use plan can reasonably be expected to be achieved. ( projet admissible pour l’hydrogène propre ) (16) Subsection 127.48(1) of the Act is amended by adding the following in alphabetical order: oxygen and nitrogen production equipment  means equipment that is (a) part of a clean hydrogen project; and (b) used for the generation of oxygen or nitrogen to be used all or substantially all in at least two of the following: (i) hydrogen production, (ii) ammonia production, (iii) electricity or heat production in support of the project, and (iv) a CCUS process in support of the project. ( matériel pour la production d’oxygène et d’azote ) (17) Subsection 127.48(1) of the Act is amended by adding the following in alphabetical order: actual hydrogen use percentage , in respect of a taxpayer’s clean hydrogen project that produces hydrogen from the pyrolysis of eligible hydrocarbons, means the percentage determined by the formula A ÷ B where A is the quantity of hydrogen (other than excluded hydrogen), in kilograms, produced by the project and used for a qualifying economic purpose during the project’s compliance period; and B is the quantity of hydrogen (other than excluded hydrogen), in kilograms, produced by the project during the compliance period. ( pourcentage réel d’utilisation d’hydrogène ) combustion , in relation to solid carbon, includes any reaction that results in a specified greenhouse gas being produced. ( combustion ) end-use plan , in respect of a clean hydrogen project of a taxpayer that is intended to produce hydrogen from the pyrolysis of eligible hydrocarbons, means a plan that (a) sets out the expected uses of any solid carbon to be produced by the project during the first seven years of hydrogen production (referred to in this definition as the “end-use period”), including the quantity, in kilograms, and percentage share of solid carbon expected to be (i) treated as a waste product and disposed of in a manner that would not lead to any of the carbon being released into the atmosphere, (ii) used for combustion or incorporated into a product intended for combustion, (iii) used in or incorporated into a product that is not intended for combustion, and (iv) used for any other purpose; (b) if any solid carbon to be produced by the project is expected to be sold during the end-use period, includes copies of any purchase agreements or other arrangements in writing (i) supporting the sale of the solid carbon, (ii) setting out the expected uses of the solid carbon as described in paragraph (a), and (iii) requiring the provision of information to the taxpayer in relation to the actual use of the solid carbon; (c) sets out the project’s expected hydrogen use percentage; (d) includes copies of agreements or other arrangements in writing supporting the sale of hydrogen expected to be produced by the project during the compliance period; and (e) contains any information required in guidelines published by the Minister of Natural Resources, including the Clean Hydrogen Investment Tax Credit – Validation and Verification Guidance Document . ( plan d’utilisation finale ) excluded hydrogen , in respect of a taxpayer’s clean hydrogen project that produces hydrogen from the pyrolysis of eligible hydrocarbons, means hydrogen that is or is expected to be vented or flared (a) for the purpose of safety or system integrity; or (b) due to the bona fide termination of an agreement supporting the sale of the hydrogen or a reasonably unforeseen change to the intended use of the hydrogen by the project, where such venting or flaring occurs for a cumulative maximum period of 180 days during the project’s compliance period. ( hydrogène exclu ) expected hydrogen production  means a clean hydrogen project’s expected gross average annual hydrogen production, in tonnes, over the first 20 years of the project’s operations. ( production d’hydrogène attendue ) expected hydrogen use percentage , in respect of a taxpayer’s clean hydrogen project that produces hydrogen from the pyrolysis of eligible hydrocarbons, means the percentage determined by the formula A ÷ B where A is the quantity of hydrogen (other than excluded hydrogen), in kilograms, expected to be produced by the project and used for a qualifying economic purpose during the project’s compliance period, as evidenced in the project’s clean hydrogen project plan; and B is the quantity of hydrogen (other than excluded hydrogen), in kilograms, expected to be produced by the project during the compliance period. ( pourcentage attendu d’utilisation d’hydrogène ) pyrolysis reactor system , in respect of a clean hydrogen project, means all property, other than excluded property, consisting of (a) one or more pyrolysis reactors; (b) any equipment that performs the function of a pyrolysis reactor; and (c) any equipment that is physically and functionally integrated with property described in paragraph (a) or (b). ( système de réacteur de pyrolyse ) qualifying economic purpose , in relation to hydrogen produced by a taxpayer’s clean hydrogen project, means (a) the use by the taxpayer of the hydrogen for a bona fide economic purpose; or (b) the sale of the hydrogen by the taxpayer to a third party in circumstances where it is reasonable to conclude that the hydrogen is or will be used for a bona fide economic purpose. ( fins économiques admissibles ) solid carbon  means a product that (a) is in a solid state; (b) contains the chemical element carbon; and (c) is derived from the pyrolysis of eligible hydrocarbons. ( carbone solide ) (18) Subsection 127.48(4) of the Act is replaced by the following: Time limit for application (4) A payment on account of tax payable under subsection (2) (a) is deemed not to have been paid if the taxpayer does not file with the Minister the prescribed form containing prescribed information referred to in subsection (2) in respect of the amount on or before the later of (i) the day that is one year after the taxpayer’s filing-due date for the year, and (ii) either (A) December 31, 2027, if the amount under subsection (2) is in respect of a clean hydrogen project that is intended to produce hydrogen from the pyrolysis of eligible hydrocarbons, or (B) December 31, 2026, in any other case ; and (b) if the prescribed form is filed after the taxpayer’s filing-due date for the year, is deemed not to arise until the prescribed form containing prescribed information has been filed with the Minister. (19) Paragraph 127.48(6)(a) of the Act is replaced by the following: (a) the most recent version of the Fuel LCA Model at the time of filing by the taxpayer of the most recent related clean hydrogen project plan with the Minister of Natural Resources shall be used, unless, at the time of filing any compliance report under subsection (16), the taxpayer elects to use a subsequent version of the Fuel LCA Model in calculating the actual carbon intensity of the project; (20) Subparagraph 127.48(6)(d)(i) of the Act is replaced by the following: (i) any captured carbon that is subject to an ineligible use ( as defined in subsection 127.44(1) ) is deemed not to be captured, and (21) Paragraph 127.48(6)(d) of the Act, as amended by subsection (20), is amended by striking out “and” at the end of subparagraph (i) and by adding the following after subparagraph (ii): (iii) any solid carbon produced by the project is deemed to be permanently stored if the carbon is (A) treated as a waste product and disposed of in a manner that would not lead to any of the carbon being released into the atmosphere, or (B) used in or incorporated into a product that is not intended for combustion, (iv) any solid carbon produced by the project that is not used in a manner described in clause (iii)(A) or (B) is deemed to be converted into carbon dioxide that is released into the atmosphere by the project, and (v) the contribution to expected carbon intensity of any solid carbon to be produced by the project is to be weighted based on the aggregate quantity of solid carbon, in kilograms, in each expected use, as described in accordance with paragraph (a) of the definition end-use plan in subsection (1); (22) Clause 127.48(6)(e)(i)(B) of the Act is replaced by the following: (B) on-site generation equipment that is used solely to convert any one or a combination of hydrogen, heat described in any of subparagraphs (i)‍(i) to (iii) or eligible hydrocarbons into electricity that supports the production of hydrogen from eligible hydrocarbons, the contribution of the electricity to carbon intensity is to be modelled as part of the project, (23) Clause 127.48(6)(e)(i)(D) of the Act is replaced by the following: (D) a generation source other than as described in any of clauses (A) to (C), (I) if the project’s compliance period has not yet commenced , the expected carbon intensity of the project is deemed to be greater than 4.5, and (II) if the project’s compliance period has commenced, the average actual carbon intensity of the project is deemed to be greater than 4.5 and subsection (18) applies as if the compliance period of the project had ended; (24) Paragraph 127.48(6)(e) of the Act is amended by striking out “and” at the end of subparagraph (ii) and by adding the following after that subparagraph: (ii.1) generated, or to be generated, from an eligible electricity generation source and purchased, or to be purchased, by the taxpayer pursuant to an agreement that is not an eligible power purchase agreement, (A) the contribution of the electricity to carbon intensity is to be calculated as the higher of the input carbon intensity of the technology-specific electricity and the provincial grid in the Fuel LCA Model, and (B) the contribution of the electricity to expected carbon intensity is to be calculated in proportion to the number of years for which the agreement will be in place during the first 20 years of the project’s operations, (25) Paragraph 127.48(6)(e) of the Act is amended by adding “and” at the end of subparagraph (iii) and by adding the following after that subparagraph: (iv) from a source that is not described in any of subparagraphs (i) to (iii), (A) if the project’s compliance period has not yet commenced, the expected carbon intensity of the project is deemed to be greater than 4.5, and (B) if the project’s compliance period has commenced, the average actual carbon intensity of the project is deemed to be greater than 4.5 and subsection (18) applies as if the compliance period of the project had ended; (26) Paragraphs 127.48(6)(h) and (i) of the Act are replaced by the following: (h) if the taxpayer disposes of any environmental attributes associated with any electricity described in subparagraph (e)(i) or (ii) or any eligible renewable hydrocarbon described in subparagraph (g)(i), (i) if the project’s compliance period has not yet commenced , the expected carbon intensity of the project is deemed to be greater than 4.5, and (ii) if the project’s compliance period has commenced, the average actual carbon intensity of the project is deemed to be greater than 4.5 and subsection (18) applies as if the compliance period of the project had ended ; (i) if, in connection with hydrogen production or electricity production in support of hydrogen production, the taxpayer uses, or proposes to use , heat energy (i) recovered from hydrogen production by the taxpayer , recovered from electricity production by the taxpayer in support of hydrogen production or produced by the taxpayer from the combustion of hydrogen or eligible hydrocarbons (with carbon dioxide captured using a CCUS process), the contribution of the heat to carbon intensity is to be modelled as part of the project, (ii) recovered from ammonia production by the taxpayer’s clean hydrogen project, the contribution of the heat to carbon intensity may be disregarded, (iii) recovered from a production process of the taxpayer, other than as described in subparagraph (i) or (ii) , or purchased from a vendor that produced the heat from eligible hydrocarbons or recovered the waste heat from a production process, the contribution of the heat to carbon intensity is to correspond with the input carbon intensity of purchased steam in the Fuel LCA Model, and (iv) from a source other than as described in subparagraphs (i) to ( iii ), (A) if the project’s compliance period has not yet commenced , the expected carbon intensity of the project is deemed to be greater than 4.5, and (B) if the project’s compliance period has commenced, the average actual carbon intensity of the project is deemed to be greater than 4.5 and subsection (18) applies as if the compliance period of the project had ended; (27) Paragraph 127.48(6)(k) of the Act is amended by striking out “and” at the end of subparagraph (iii), by adding “and” at the end of subparagraph (iv) and by adding the following after subparagraph (iv): (v) solid carbon, unless the solid carbon is used in or incorporated into a product that is not intended for combustion; (28) Section 127.48 of the Act is amended by adding the following after subsection (6): Environmental attribute certificates (6.1) For the purposes of subsections (6) and (7), where a taxpayer has acquired an environmental attribute certificate in connection with the purchase of electricity or eligible renewable hydrocarbons, (a) the disposition of environmental attributes by the taxpayer does not include the retirement of the certificate to claim the use of the attributes with the appropriate provincially designated authority in relation to the taxpayer’s clean hydrogen project; and (b) for the purpose of calculating the project’s actual carbon intensity, if the taxpayer has not retired any certificate associated with the electricity or eligible renewable hydrocarbons used by the taxpayer in relation to the project during the project’s compliance period, the environmental attributes associated with the certificate are deemed to have been disposed of by the taxpayer immediately before the end of the compliance period. (29) Subsection 127.48(7) of the Act is amended by striking out “or” at the end of paragraph (c) and by replacing paragraph (d) with the following: (d) any environmental attributes associated with an eligible power purchase agreement referenced in the most recent clean hydrogen project plan of the taxpayer or an agreement for the acquisition of eligible renewable hydrocarbons have been disposed of by the taxpayer; or (e) the taxpayer notifies the Minister and the Minister of Natural Resources in writing that it intends to file a revised clean hydrogen project plan for the project. (30) Subsection 127.48(7) of the Act, as amended by subsection (29), is amended by striking out “or” at the end of paragraph (d) and by adding the following after that paragraph: (d.1) the project is intended to produce hydrogen from the pyrolysis of eligible hydrocarbons and (i) the taxpayer reasonably expects that there will be a decrease (as compared to the most recent project plan for the project) to the project’s expected hydrogen production, or (ii) any agreement supporting the sale of any hydrogen, or sale and use of any solid carbon, referenced in the most recent end-use plan of the taxpayer (A) has not been finalized and executed so as to become legally binding, or (B) has been materially modified or terminated; or (31) Subparagraphs 127.48(8)(b)(ii) and (iii) of the Act are replaced by the following: (ii) if the taxpayer previously deducted a clean hydrogen tax credit in respect of the project , (A) the amount of the clean hydrogen tax credit previously deducted shall not be increased, and (B) subsection (18) applies as if the compliance period ended on the date of the filing of the revised plan and the average actual carbon intensity of the project was equal to the expected carbon intensity set out in the revised plan, and (iii) any new clean hydrogen tax credit of the taxpayer determined on or after the date of the confirmation of the revised plan shall be based on the expected carbon intensity set out in the revised plan; (32) Paragraph 127.48(8)(b) of the Act, as amended by subsection (31), is replaced by the following: (b) if the Minister of Natural Resources is satisfied that the project will meet the requirements in paragraphs (a) to (d) of the definition qualified clean hydrogen project in subsection (1), (i) the Minister of Natural Resources shall confirm, with all due dispatch, the revised plan, (ii) if the taxpayer previously deducted a clean hydrogen tax credit in respect of the project, (A) the amount of the clean hydrogen tax credit previously deducted shall not be increased, (B) subsection (18) applies as if the compliance period ended on the date of the filing of the revised plan and the average actual carbon intensity of the project was equal to the expected carbon intensity set out in the revised plan, and (C) subsection (10.3) applies for the taxation year in which the revised plan is filed, and (iii) any new clean hydrogen tax credit of the taxpayer determined on or after the date of the confirmation of the revised plan shall be based on the expected carbon intensity and, if applicable, the expected hydrogen production, set out in the revised plan; (33) Subsection 127.48(9) of the Act is amended by striking out “and” at the end of paragraph (d) and by replacing paragraph (e) with the following: (e) the Minister of Natural Resources may request from the taxpayer all documentation and information necessary for the Minister of Natural Resources to fulfill a responsibility under this section and the taxpayer shall provide such documentation or information on or before the later of the day that is (i) 180 days after the documentation or information was requested, and (ii) 60 days after the documentation or information becomes available; and (f) if the taxpayer fails to provide the documentation or information as required under paragraph (e), in addition to any penalties applicable under this Act, the Minister of Natural Resources may refuse to confirm the taxpayer’s clean hydrogen project plan or revised clean hydrogen project plan. (34) Paragraph 127.48(10)(a) of the Act is amended by striking out “or” at the end of subparagraph (ii) and by adding the following after that subparagraph: (ii.1) that is a qualified expenditure (as defined in subsection 127(9)) in respect of which an investment tax credit was deducted by any person, or (35) The portion of paragraph 127.48(10)(g) of the Act before subparagraph (i) is replaced by the following: (g) after applying paragraph (f), if the property is oxygen and nitrogen production equipment, dual-use electricity and heat equipment, project support equipment or equipment described in any of subparagraphs (c)(iv) to (vi) of the definition eligible clean hydrogen property in subsection (1) and that property is used in the production of hydrogen and ammonia, be allocated between two separate capital cost amounts, with each amount determined based on the percentage of the expected use of the equipment that is attributable to hydrogen production and ammonia production over the first 20 years of the project’s operations, based on the project’s most recent clean hydrogen project plan , and (36) Section 127.48 of the Act is amended by adding the following after subsection (10): Maximum capital cost of pyrolysis reactor system (10.1) For the purposes of this section, if a clean hydrogen project produces or is intended to produce hydrogen from the pyrolysis of eligible hydrocarbons, (a) the aggregate capital cost to a taxpayer of all eligible clean hydrogen property forming part of the pyrolysis reactor system of the project is deemed to be the lesser of (i) the amount determined by the formula A × B where A is $3,000, and B the project’s expected hydrogen production as set out in the most recent clean hydrogen project plan in respect of the project, and (ii) the aggregate capital cost of all eligible clean hydrogen property forming part of the system, determined without reference to this subsection; (b) if the taxpayer acquires a particular property forming part of the system and the acquisition causes the aggregate capital cost of the system to exceed the amount determined by the formula in subparagraph (a)(i), the capital cost of the particular property is deemed to be the amount determined by the formula C − D where C is the amount determined by the formula in subparagraph (a)(i), and D is the aggregate capital cost of all other property forming part of the system; and (c) subject to subsection (10.2), if paragraph (b) has applied, the capital cost of each new property that the taxpayer acquires and that forms part of the system is deemed to be nil. Increase to capital cost limit (10.2) If the amount determined by the formula in paragraph (10.1)(a) in respect of a pyrolysis reactor system (in this subsection referred to as the “system capital cost limit”) increases because of an increase to the expected hydrogen production of a taxpayer’s clean hydrogen project, as indicated in a revised clean hydrogen project plan that is filed with the Minister of Natural Resources, the increased system capital cost limit shall apply only to property acquired after the date of the confirmation by the Minister of Natural Resources of the revised plan in accordance with paragraph (8)(b). Pyrolysis system recapture — decrease in expected production (10.3) If, before the first day of the compliance period of a taxpayer’s clean hydrogen project that is intended to produce hydrogen from the pyrolysis of eligible hydrocarbons, the expected hydrogen production included in a revised clean hydrogen project plan in respect of the project filed with the Minister of Natural Resources is less than the expected hydrogen production used to determine the most recent clean hydrogen tax credit in respect of the project, there shall be added to the taxpayer’s tax otherwise payable under this Part the amount determined by the formula (1 – (A ÷ B)) × C where A is the aggregate capital cost amount determined under paragraph (10.1)(a) using the expected hydrogen production included in the revised plan; B is the aggregate capital cost amount determined under paragraph (10.1)(a) used to determine the most recent clean hydrogen tax credit in respect of all property forming part of the system; and C is the clean hydrogen tax credit amount deducted in respect of all property forming part of the system. (37) Paragraph 127.48(16)(c) of the Act is replaced by the following: (c) any shutdown time of the project in respect of the year during which the project does not produce hydrogen ; (38) Paragraph 127.48(16)(d) of the Act is replaced by the following: (c.1) if the project produces hydrogen from the pyrolysis of eligible hydrocarbons, the end use of the solid carbon produced by the project during the year; (d) for the compliance report in respect of the fifth operating year, a report prepared by a qualified verification firm in respect of the project that verifies (i) the actual carbon intensity of the hydrogen produced during each operating year of the compliance period, and (ii) if the project produces hydrogen from the pyrolysis of eligible hydrocarbons, (A) the project’s actual hydrogen use percentage, and (B) the end use of the solid carbon produced by the project during each operating year of the compliance period; and (39) Subsection 127.48(18) of the Act is replaced by the following: Pyrolysis recapture — end of compliance period (17.1) If a qualified clean hydrogen project produces hydrogen from the pyrolysis of eligible hydrocarbons and, at the end of the project’s compliance period, the project’s actual hydrogen use percentage is less than 90%, or the project has consumed 50% or more of the hydrogen produced during the compliance period, the average actual carbon intensity of the project is deemed to be greater than 4.5. Recovery — change in carbon intensity (18) In the taxation year of a taxpayer in which the compliance period of the taxpayer’s qualified clean hydrogen project ends, if the average actual carbon intensity of the hydrogen produced is greater than the most recent expected carbon intensity that was used to determine a clean hydrogen tax credit in respect of the project, there shall be added to the taxpayer’s tax otherwise payable under this Part for the taxation year an amount equal to the total of all amounts, each of which is determined by the formula (A − B) × C − D where A is the specified percentage that was applied to the capital cost of the eligible clean hydrogen property forming part of the project in determining a clean hydrogen tax credit of the taxpayer; B is the specified percentage that would have applied to the capital cost of the property if the expected carbon intensity were equal to the average actual carbon intensity of the project; C is (a) if the property is part of a pyrolysis reactor system and subsection (10.1) has applied to limit the capital cost of any property forming part of the system, the capital cost amount in respect of the property determined under paragraph (22.1)(a), and (b) in any other case , the capital cost of the property on which the clean hydrogen tax credit was deducted; and D is the total of all amounts, each of which can reasonably be considered to be the portion of any amount payable by the taxpayer because of subsection (22) in respect of the property. (40) The description of B in subsection 127.48(22) of the Act is replaced by the following: B is the total of all amounts, each of which can reasonably be considered to be the portion of any amount payable by the taxpayer because of subsection (18) in respect of the property; (41) Section 127.48 of the Act is amended by adding the following after subsection (22): Recapture — pyrolysis reactor system (22.1) For the purposes of subsections (10.3), (18), (21) and (22), if subsection (10.1) has applied to limit the capital cost of any property forming part of a pyrolysis reactor system, (a) the capital cost of each property that is part of the system is deemed to be the amount determined by the formula A × (B ÷ C) where A is the amount determined in respect of the system under paragraph (10.1)(a), B is the capital cost of the property determined without reference to subsection (10.1) and this subsection, and C is the aggregate capital cost of all property forming part of the system, determined without reference to subsection (10.1) and this subsection; and (b) the clean hydrogen tax credit in respect of the property referred to in paragraph (a) is deemed to be the amount determined by the formula D × E where D is the deemed capital cost amount determined under paragraph (a), and E is the specified percentage in respect of the property. (42) Subsection 127.48(25) of the Act is replaced by the following: Recovery and recapture — partnerships (25) Subject to section 127.47, if subsection (12) has at any time applied to add an amount in computing the clean hydrogen tax credit of a current or former member of a partnership, subsections (10.3) and (17.1) to (23) apply to determine amounts in respect of the partnership as if the partnership were a taxable Canadian corporation, its fiscal period were its taxation year and it had deducted all of the clean hydrogen tax credits that were previously added in computing the clean hydrogen tax credit of any member of the partnership because of the application of subsection (12) in respect of its partnership interest. (43) Subsection 127.48(30) of the Act is replaced by the following: Credit after compliance period (30) For the purpose of applying subsection (2) in respect of a property acquired after the compliance period of a qualified clean hydrogen project of the taxpayer, ( a ) the expected carbon intensity of the project is deemed to be the greater of the expected carbon intensity otherwise determined and the average actual carbon intensity for the compliance period of the project; and (b) if the project produces hydrogen from the pyrolysis of eligible hydrocarbons, the expected hydrogen use percentage of the project is deemed to be equal to the actual hydrogen use percentage of the project. (44) Subsection 127.48(32) of the Act is replaced by the following: Authority of the Minister of Natural Resources (32) For the purposes of determining whether a property is an eligible clean hydrogen property and whether a property is part of a pyrolysis reactor system , the Clean Hydrogen Investment Tax Credit – Technical and Equipment Guidance Document published by the Department of Natural Resources is to apply conclusively with respect to engineering and scientific matters. (45) Subsections (1), (2), (4), (5), (7), (9) to (12), (14), (16), (19), (20), (22) to (26), (28), (29), (31), (33), (35) and (37) are deemed to have come into force on March 28, 2023. (46) Subsections (3), (6), (8), (13), (15), (17), (18), (21), (27), (30), (32), (36) and (38) to (44) are deemed to have come into force on December 16, 2024. (47) Subsection (34) is deemed to have come into force on May 4, 2026. 32 (1) Paragraph 127.49(5)(a) of the Act is amended by striking out “or” at the end of subparagraph (ii.1) and by adding the following after that subparagraph: (ii.2) that is a qualified expenditure (as defined in subsection 127(9)) in respect of which an investment tax credit was deducted by any person, or (2) Subsections 127.49(13) and (14) of the Act are replaced by the following: Certain non-arm’s length transfers (13) Subsections (11) and (12) do not apply to a taxpayer that is a taxable Canadian corporation (in this subsection and subsection (14) referred to as the “transferor”) that disposes of a property to another taxable Canadian corporation (in this subsection and subsection (14) referred to as the “purchaser”) related to the transferor, if the purchaser acquired the property in circumstances where the property would be CTM property to the purchaser (but for paragraph (b) of the definition CTM property in subsection (1)) and is used by the purchaser for a CTM use. Certain non-arm’s length transfers — recapture deferred (14) If a property is disposed of to a purchaser in circumstances described in subsection (13), (a) subsections (11) and (12) do not apply to the transferor in respect of the property after the time of the disposition; and (b) for the purposes of subsections (11) and (12), (i) the purchaser is deemed to have acquired the property, as a CTM property, on the date the property was acquired by the transferor, (ii) the capital cost to the purchaser of the property on which a CTM investment tax credit was deducted is deemed to be the amount that was the capital cost to the transferor of the property on which the CTM investment tax credit was deducted, and (iii) the purchaser is deemed to have become entitled to a CTM investment tax credit in respect of the capital cost referred to in subparagraph (ii) equal to the amount of the transferor’s CTM investment tax credit in respect of the property. (3) Subsection (1) is deemed to have come into force on May 4, 2026. (4) Subsection (2) applies in respect of property that is acquired and becomes available for use on or after May 4, 2026. 33 (1) The definition operating year in subsection 127.491(1) of the Act is replaced by the following: operating year  of a specified natural gas energy system, means each cumulative 365-day period, the first of which begins on the start-up date of a qualifying entity’s specified natural gas energy system, disregarding any day during which the system is not operating.‍‍ ( année d’exploitation ) (2) Subparagraph (e)(vii) of the definition clean electricity property in subsection 127.491(1) of the Act is replaced by the following: (vii) described in subparagraph (d)‍(xviii) or (xix) of Class 43.‍1 in Schedule II to the Income Tax Regulations , but excluding equipment that is part of a system that uses any fossil fuel in operation, (3) Clause (a)(i)(B) of the definition qualified natural gas energy equipment in subsection 127.491(1) of the Act is replaced by the following: (B) is fuelled solely by the combustion of gaseous fuels within the system , (4) Subsection 127.491(1) of the Act is amended by adding the following in alphabetical order: province  includes the Newfoundland offshore area and the Nova Scotia offshore area. ( province ) (5) Paragraph 127.491(9)(a) of the Act is amended by adding the following after subparagraph (ii): (ii.1) that is a qualified expenditure (as defined in subsection 127(9)) in respect of which an investment tax credit was deducted by any person, (6) Section 127.491 of the Act is amended by adding the following after subsection (19): Shared filing (19.1) If more than one person is required by this section to file any documentation or information with the Minister or the Minister of Natural Resources in respect of a qualified natural gas energy system (including, but not limited to, a system plan or a compliance report described in subsection (19)), the filing with full and accurate disclosure by any one of such persons of the documentation or information is deemed to have been made by each person to whom the relevant requirement applies. (7) Subsections 127.491(22) and (23) of the Act are replaced by the following: Certain related party transfers (22) Subsections (16) and (17) do not apply to a qualifying entity (in this subsection and subsection (23) referred to as the “transferor”) that disposes of a property to another qualifying entity (in this subsection and subsection (23) referred to as the “purchaser”) that is related to the transferor if the purchaser acquired the property in circumstances where the property would be clean electricity property to the purchaser but for paragraph (c) of the definition clean electricity property in subsection (1). Certain related party transfers — recapture deferred (23) If a property is disposed of to a purchaser in circumstances described in subsection (22), (a) subsections (16) and (17) do not apply to the transferor in respect of the property after the time of the disposition; and (b) for the purposes of subsections (16) and (17), (i) the purchaser is deemed to have acquired the property, as a clean electricity property, on the date the property was acquired by the transferor, (ii) the capital cost to the purchaser of the property on which a clean electricity investment tax credit was deducted is deemed to be the amount that was, before that time, the capital cost to the transferor of the property on which the clean electricity investment tax credit was deducted, (iii) the purchaser is deemed to have become entitled to a clean electricity investment tax credit in respect of the capital cost referred to in subparagraph (ii) equal to the amount of the transferor’s clean electricity investment tax credit in respect of the property, and (iv) the purchaser is deemed to have paid any amount previously paid by the transferor because of subsection (18) in respect of the property. (8) Subsections (1), (4) and (6) are deemed to have come into force on April 16, 2024. (9) Subsections (2), (3) and (7) apply in respect of property that is acquired and becomes available for use on or after May 4, 2026. (10) Subsection (5) is deemed to have come into force on May 4, 2026. 34 (1) Subsection 128(1) of the Act is amended by adding “and” at the end of paragraph (e), by striking out “and” at the end of paragraph (f) and by repealing paragraph (g). (2) Subsection (1) applies in respect of bankruptcy proceedings that are commenced on or after April 16, 2024. 35 Section 128.1 of the Act is amended by adding the following after subsection (8): Post-emigration loss — reassessment period (8.1) Despite subsections 152(4) to (5), any assessment, reassessment or additional assessment of the tax payable by the individual in respect of the year that includes the particular time referred to in subsection (8) may be made by the Minister as is necessary to take into account the amount deducted from the proceeds of disposition of the property under subsection (8). 36 (1) Subsection 129(1.2) of the Act is replaced by the following: Dividends deemed not to be taxable dividends (1.2) Where a dividend is paid on a share of the capital stock of a corporation and the share (or another share for which the share was substituted) was acquired by its holder in a transaction or as part of a series of transactions one of the main purposes of which was to enable the corporation ( or another corporation affiliated with the corporation ) to obtain a dividend refund, the dividend shall, for the purposes of subsections (1) and (1.3) to (1.32) , be deemed not to be a taxable dividend. Staggered year ends — dividend refund suspension (1.3) For the purpose of subsection (1) and subject to subsection (1.31), the amount of a dividend paid by a corporation (in this subsection and subsections (1.31) and (1.32) referred to as the “payer corporation”) — other than a dividend to which paragraph 55(3)(a) or (b) applies in the course of a reorganization — is deemed not to be a taxable dividend (in this section referred to as a “suspended dividend”) to the extent that the dividend is received, directly or indirectly through one or more trusts or partnerships, by another corporation (in subsections (1.31) and (1.32) referred to as a “payee corporation”) that (a) is affiliated with the payer corporation immediately before the time the dividend is paid; (b) is a private corporation or a subject corporation (as defined in subsection 186(3)); and (c) received the dividend in a taxation year that ends after the taxation year of the payer corporation in which the dividend was paid. Exclusion (1.31) Subsection (1.3) does not apply to a dividend if (a) the following conditions are met: (i) in the taxation year of the payee corporation in which the dividend was received, the payee corporation paid, on or before the balance-due day of the taxation year of the payer corporation in which the dividend was paid (in this subsection referred to as the “payer-due day”), one or more taxable dividends (in this subsection referred to as the “payee dividend”) that have the same character as the dividend, the total of which is greater than or equal to the product obtained (in this section referred to as the “suspended portion”) when the portion of the dividend refund of the payer corporation that would otherwise be determined under paragraph (1)(a) if this Act were read without reference to subsection (1.3), in respect of the dividend, is multiplied by 2.6 (in this subsection, in the case where that total is greater than the suspended portion, the excess is referred to as the “surplus payee dividend”), (ii) if applicable, in the taxation year of each corporation (in this subsection referred to as a “grandparent corporation”) that is affiliated with the payer corporation immediately before the time the dividend is paid and that received, directly or indirectly through one or more trusts, partnerships or other grandparent corporations, all or a portion of the payee dividend, the grandparent corporation paid, on or before the payer-due day, one or more taxable dividends (in this subsection referred to as the “grandparent dividend”) that have the same character as the dividend, the total of which is greater than or equal to that proportion of the suspended portion that the amount of the dividend received, directly or indirectly, by the grandparent corporation is of the payee dividend (in this subsection, in the case where that total is greater than that proportion of the suspended portion, the excess is referred to as the “surplus grandparent dividend”), and (iii) no portion of the payee dividend or the grandparent dividend in excess of the surplus payee dividend or the surplus grandparent dividend, as applicable, is otherwise relied on by any taxpayer to avoid the application of subsection (1.3); or (b) the payer corporation was subject to a loss restriction event (i) within 30 days after the payer corporation paid the dividend that, but for this paragraph, would be subject to subsection (1.3), or (ii) within 12 months after the payer corporation paid the dividend that, but for this paragraph, would be subject to subsection (1.3) and the dividend was paid in contemplation of the loss restriction event. Release of suspended dividend refund (1.32) For the purpose of subsection (1), a payer corporation is deemed to have paid at the end of a particular taxation year a taxable dividend that is of the same character as a suspended dividend paid in a taxation year of the payer corporation preceding the particular taxation year and that is equal to the suspended portion if the following conditions are met: (a) during the period beginning on the day on which the suspended dividend was paid and ending on the day on which the particular taxation year ends (i) the payer corporation was not subject to a loss restriction event, (ii) the payee corporation and, if applicable, each grandparent corporation (as referred to in subparagraph (1.31)(a)(ii) at the time subsection (1.3) applied to the payer corporation in respect of the suspended dividend) paid one or more taxable dividends that have the same character as the suspended dividend and the dividends (in this subsection referred to as the “particular dividends”) were received, directly or indirectly through one or more trusts, partnerships or grandparent corporations, by a taxpayer that was not (A) a corporation that was affiliated with the payer corporation immediately before the time the suspended dividend was paid, or (B) a private corporation or a subject corporation as defined in subsection 186(3) (in this subsection referred to as the “connected corporation”) that was connected, within the meaning assigned by subsection 186(4), with the payee corporation or a grandparent corporation at the time that the payee corporation or the grandparent corporation paid the taxable dividend unless (I) in the taxation year of the connected corporation in which the dividend was received, the connected corporation paid, by the end of the particular taxation year, one or more taxable dividends (in this subsection referred to as the “connected dividend”) that have the same character as the suspended dividend, the total of which is greater than or equal to that proportion of the suspended portion that the amount of the dividend received, directly or indirectly, by the connected corporation is of the dividend paid by the payee corporation or grandparent corporation (in this subsection referred to as the “connected portion”), and (II) if applicable, in the taxation year of each corporation (in this subsection referred to as a “connected parent or grandparent corporation”) that is connected, within the meaning assigned by subsection 186(4), with the connected corporation immediately before the time the connected dividend is paid and that received, directly or indirectly through one or more trusts, partnerships or connected parent or grandparent corporations, all or a portion of the connected dividend, the connected parent or grandparent corporation paid, by the end of the particular taxation year, one or more taxable dividends that have the same character as the suspended dividend, the total of which is greater than or equal to that proportion of the connected portion that the amount of the connected dividend received, directly or indirectly, by the connected parent or grandparent corporation is of the connected dividend, and (iii) the total amount of the particular dividends are greater than or equal to the suspended portion (with the total amount of any excess being referred to in this subsection as the “surplus dividends”) except in the case of particular dividends received by the connected corporation, the amount of the particular dividends is determined by the formula A + B where A is the amount of the connected dividend paid by the connected corporation to a taxpayer other than a taxpayer described in clause (ii)(A) or subclause (ii)(B)(II) in respect of the connected corporation, and B is the amount of a taxable dividend paid by the connected parent or grandparent corporation to a taxpayer other than a taxpayer described in clause (ii)(A) or clause (ii)(B) in respect of the connected parent or grandparent corporation; (b) no portion of the taxable dividends described in subparagraph (a)(ii) exceeding the amount determined in subparagraph (a)(iii) in respect of the particular dividends in excess of the surplus dividends or exceeding the amount of the connected dividend in excess of the applicable connected portion (or in the case of a taxable dividend paid by a connected parent or grandparent corporation, exceeding the amount of the dividend paid in excess of their share of the applicable connected portion) is relied on by any taxpayer (other than the payer corporation in respect of the suspended dividend) to (i) obtain a dividend refund under subsection (1), or (ii) avoid the application of subsection (1.3); and (c) this subsection has not previously applied in respect of the suspended dividend. Assessments (1.33) Despite subsections 152(4) to (5), such assessments, reassessments, determinations and redeterminations may be made as are necessary to give effect to subsections (1.3) to (1.32). (2) Subsection (1) applies to dividends paid in taxation years that begin on or after November 4, 2025. 37 (1) Paragraph 132.2(3)(h) of the Act is replaced by the following: (h) where a share to which paragraph (g) applies would, if this Act were read without reference to this paragraph, cease to be a qualified investment ( as defined in section 204 or subsection 207.01(1)) as a consequence of the qualifying exchange, the share is deemed to be a qualified investment until the earlier of the day that is 60 days after the day that includes the transfer time and the time at which it is disposed of in accordance with paragraph (g); (2) Subsection (1) comes into force on January 1, 2027. 38 (1) Subparagraph (g)(iii) of the definition eligible trust in subsection 135.2(1) of the Act is replaced by the following: (iii) property described in paragraph (a) or subparagraph (c)(i) of the definition qualified investment in subsection 207.01(1) or a deposit with a credit union; (2) Subsection (1) comes into force on January 1, 2027. 39 (1) The portion of subsection 143.1(3) of the Act before paragraph (a) is replaced by the following: Termination of amateur athlete trust (3) Subject to subsection (3.1), if an amateur athlete trust holds property on behalf of a beneficiary who has not competed in an international sporting event as a Canadian national team member for a period of eight years that ends in a particular taxation year and that begins in the year that is the later of (2) Section 143.1 of the Act is amended by adding the following after subsection (3): Special rule — 2019 (3.1) If the particular taxation year referred to in subsection (3) in respect of an amateur athlete trust would, if this section were read without reference to this subsection, be the 2019 taxation year, the reference to “eight years” in subsection (3) is to be read as a reference to “nine years”. (3) Subsections (1) and (2) are deemed to have come into force on January 1, 2019. 40 (1) Paragraph 144.1(2)(a) of the Act is replaced by the following: (a) the only purpose of the trust is to provide benefits to, or for the benefit of, persons described in subparagraph (d)(i), (ii) or ( v ) and all or substantially all of the total cost of the benefits is applicable to designated employee benefits; (2) Subparagraph 144.1(2)(b)(iii) of the Act is replaced by the following: (iii) after the death of the last beneficiary described in subparagraph (d)(i) or (ii) ( other than a key employee or an individual who is related to a key employee), His Majesty in right of Canada or a province; (3) Paragraph 144.1(2)(d) of the Act is amended by striking out “or” at the end of subparagraph (iii), by adding “or” at the end of subparagraph (iv) and by adding the following after subparagraph (iv): (v) an individual whose only beneficial interest in the trust is a right, whether immediate or future and whether absolute or contingent, to receive a designated employee benefit that is provided in respect of, in the course of, or by virtue of the office or employment of an employee of a participating employer or former participating employer with whom the employee deals at arm’s length; (4) Clause 144.1(2)(e)(i)(B) of the Act is replaced by the following: (B) at least 75% of the members of the class (I) are not key employees ( and are not individuals related to a key employee ) of any of the participating employers under the trust, or (II) deal at arm’s length with participating employers under the trust and are individuals in respect of whom contributions to the trust are determined in connection with a collective bargaining agreement, or (5) Subsection (4) comes into force on January 1, 2027. 41 (1) The definition qualified investment in subsection 146(1) of the Act is repealed. (2) The definition spousal or common-law partner plan in subsection 146(1) of the Act is amended by striking out “or” at the end of paragraph (a), by adding “or” at the end of paragraph (b) and by adding the following after paragraph (b): (c) a member’s account under a pooled registered pension plan that has received a payment out of or a transfer from a spousal or common-law partner plan in relation to the taxpayer; ( régime au profit de l’époux ou conjoint de fait ) (3) The portion of subsection 146(2) of the Act before paragraph (a) is replaced by the following: Acceptance of plan for registration (2) The Minister shall not accept for registration for the purposes of this Act any retirement savings plan unless an application is made in the prescribed manner and , in the Minister’s opinion, it complies with the following conditions: (4) Subparagraph 146(4)(b)(ii) of the Act is replaced by the following: (ii) such portion of the amount determined under subparagraph (i) in respect of the trust for the year as can reasonably be considered to be income from, or from the disposition of, a qualified investment (as defined in subsection 207.01(1) ) for the trust; and (5) Paragraph 146(16)(b) of the Act is replaced by the following: (b) to a registered pension plan , registered retirement savings plan or registered retirement income fund under which the spouse or common-law partner or former spouse or common-law partner of the transferor is the member or annuitant, where the transferor’s spouse or common-law partner or former spouse or common-law partner is entitled to the amount under a decree, order or judgment of a competent tribunal, or under a written separation agreement, relating to a division of property between the transferor and the transferor’s spouse or common-law partner or former spouse or common-law partner in settlement of rights arising out of, or on the breakdown of, their marriage or common-law partnership, (6) Subsections (1) and (4) come into force on January 1, 2027. (7) Subsection (2) is deemed to have come into force on August 15, 2025. 42 (1) The definition qualified investment in subsection 146.1(1) of the Act is repealed. (2) Subparagraph (a)(v) of the definition education savings plan in subsection 146.1(1) of the Act is replaced by the following: (v) a designated subscriber, and (3) The definition subscriber in subsection 146.1(1) of the Act is amended by adding the following after paragraph (a.1): (a.2) an individual who has before that time, under a written agreement, acquired a subscriber’s rights from the designated subscriber and who was, at the time those rights were acquired, the beneficiary, the primary caregiver (as defined in subsection 2(1) of the Canada Education Savings Act ) of the beneficiary or the cohabiting spouse or common-law partner , as defined in section 122.6, of that caregiver, (4) Paragraph (d) of the definition subscriber in subsection 146.1(1) of the Act is replaced by the following: (d) a designated subscriber (5) Subsection 146.1(1) of the Act is amended by adding the following in alphabetical order: designated subscriber  under an education savings plan, means the Minister designated for the purposes of the Canada Education Savings Act that enters into the plan with a promoter. ( souscripteur désigné ) (6) Subsection 146.1(2.3) of the Act is amended by striking out “and” at the end of paragraph (a), by adding “and” at the end of paragraph (b) and by adding the following after paragraph (b): (c) a designation of the beneficiary under the plan if the subscriber is a designated subscriber. (7) The portion of subsection 146.1(5) of the Act before paragraph (a) is replaced by the following: Trust not taxable (5) No tax is payable under this Part by a trust that is governed by a RESP on its taxable income for a taxation year, except that, if at any time in the taxation year, it holds a property that is a non-qualified investment (as defined in subsection 207.01(1) ) for the trust, tax is payable under this Part by the trust on the amount that would be its taxable income for the taxation year if it had no income or losses from sources other than non-qualified investments , and no capital gains or capital losses other than from dispositions of non-qualified investments , and for that purpose, (8) Section 146.1 of the Act is amended by adding the following after subsection (7.2): Special rules (8) If an education savings plan is entered into between a promoter and a designated subscriber, the registration conditions in respect of the plan are modified as follows: (a) in the case where a subscriber acquires the rights of the designated subscriber under the plan, the Social Insurance Number of the beneficiary must be provided to the promoter before educational assistance payments may be made to or for the beneficiary; and (b) throughout the period during which the subscriber is a designated subscriber (i) paragraph (2)(d.1) does not apply to an accumulated income payment to the designated subscriber, (ii) paragraph (2)(l) does not apply to the plan, (iii) the plan does not allow contributions on behalf of the beneficiary, and (iv) the plan does not allow for the payment of educational assistance payments to or for the beneficiary. (9) Subsections (1) and (7) come into force on January 1, 2027. 43 (1) The definition qualified investment in subsection 146.3(1) of the Act is repealed. (2) The description of A in the definition minimum amount in subsection 146.3(1) of the Act is replaced by the following: A is the total fair market value of all properties held in connection with the fund at the beginning of the year (other than annuity contracts held by the plan trust that, at the beginning of the year, are described in paragraph ( j ) of the definition qualified investment in subsection 207.01(1) ); (3) Paragraph (a) of the description of C in the definition minimum amount in subsection 146.3(1) of the Act is replaced by the following: (a) a periodic payment under an annuity contract described in paragraph ( j ) of the definition qualified investment in subsection 207.01(1) that is held by the trust at the beginning of the year and is paid to the trust in the year, or (4) The portion of subsection 146.3(2) of the Act before paragraph (a) is replaced by the following: Acceptance of fund for registration (2) The Minister shall not accept for registration for the purposes of this Act any retirement income fund of an individual unless an application is made in the prescribed manner and , in the Minister’s opinion, the following conditions are complied with: (5) The portion of paragraph 146.3(2)(e.1) of the Act before subparagraph (i) is replaced by the following: (e.1) if the fund does not govern a trust or the fund governs a trust created before 1998 that does not hold an annuity contract as a qualified investment ( as defined in subsection 207.01(1) ) for the trust, the fund provides that if an annuitant, at any time, directs that the carrier transfer all or part of the property held in connection with the fund, or an amount equal to its value at that time, to another registered retirement income fund of the annuitant or in accordance with subsection (14.1), the transferor shall retain an amount equal to the lesser of (6) Clause 146.3(2)(e.2)(i)(B) of the Act is replaced by the following: (B) an annuity contract described, immediately after the transfer, in paragraph ( g ) of the definition qualified investment in subsection 207.01(1) , and (7) Subparagraph 146.3(2)(f)(iii) of the Act is replaced by the following: (iii) the individual to the extent only that the amount of the consideration was an amount described in clause 60(j)(iv)(C) or subparagraph 60(l)(v), (8) Subparagraph 146.3(3)(e)(ii) of the Act is replaced by the following: (ii) such portion of the amount determined under subparagraph (i) in respect of the trust for the year as can reasonably be considered to be income from, or from the disposition of, a qualified investment ( as defined in subsection 207.01(1) ) for the trust. (9) Paragraph 146.3(6.4)(a) of the Act is replaced by the following: (a) at any time after the death of the annuitant, a trust governed by the fund held an investment that is a non-qualified investment (as defined in subsection 207.01(1) ); or (10) The portion of subsection 146.3(9) of the Act before paragraph (b) is replaced by the following: Tax payable on income from non-qualified investment (9) If a trust that is governed by a RRIF holds, at any time in a taxation year, a property that is a non-qualified investment (as defined in subsection 207.01(1) ), (a) tax is payable under this Part by the trust on the amount that its taxable income for the year would be if it had no incomes or losses from sources other than non-qualified investments or no capital gains or capital losses other than from dispositions of non-qualified investments , as the case may be; and (11) Paragraph 146.3(14)(b) of the Act is amended by striking out “or” at the end of subparagraph (i), by adding “or” at the end of subparagraph (ii) and by adding the following after subparagraph (ii): (iii) a registered pension plan for the benefit of the individual. (12) Subsection 146.3(14.1) of the Act is replaced by the following: Transfer to PRPP or RPP (14.1) An amount is transferred from a registered retirement income fund of an annuitant in accordance with this subsection if the amount is transferred at the direction of the annuitant directly to (a) an account of the annuitant under a pooled registered pension plan; (b) a registered pension plan of which, at any time before the transfer, the annuitant was a member (as defined in subsection 147.1(1)) or to a specified pension plan and is allocated to the annuitant under a money purchase provision (as defined in subsection 147.1(1)) of the plan; (c) a licensed annuities provider to acquire an advanced life deferred annuity for the benefit of the annuitant; or (d) a registered pension plan, not exceeding the amount necessary to fund additional benefits becoming provided to the annuitant under a defined benefit provision (as defined in subsection 147.1(1)) of the plan, as a consequence of a past service event (as defined in subsection 147.1(1)). (13) Subsections (1) to (3), (5), (6) and (8) to (10) come into force on January 1, 2027. (14) Subsection (7) is deemed to have come into force on August 4, 2023. (15) Subsection (12) is deemed to have come into force on January 1, 2025. 44 (1) The definition qualified investment in subsection 146.4(1) of the Act is repealed. (2) The descriptions of A and B in paragraph (b) of the definition specified maximum amount in subsection 146.4(1) of the Act are replaced by the following: A is 10% of the fair market value of the property held by the plan trust at the beginning of the calendar year (other than annuity contracts held by the plan trust that, at the beginning of the calendar year, are described in paragraph ( i ) of the definition qualified investment in subsection 207.01(1) ), and B is the total of all amounts each of which is (i) a periodic payment under an annuity contract described in paragraph ( i ) of the definition qualified investment in subsection 207.01(1) that is held by the plan trust at the beginning of the calendar year and that is paid to the plan trust in the calendar year, or (ii) if the periodic payment under the contract is not made to the plan trust because the plan trust disposed of the right to that payment in the calendar year, a reasonable estimate of that payment on the assumption that the contract had been held throughout the calendar year and no rights under the contract were disposed of in the calendar year. ( plafond ) (3) The description of A in paragraph 146.4(4)(l) of the Act is replaced by the following: A is the fair market value of the property held by the plan trust at the beginning of the calendar year (other than annuity contracts held by the plan trust that, at the beginning of the calendar year, are described in paragraph ( i ) of the definition qualified investment in subsection 207.01(1) ), (4) Subparagraph (i) of the description of D in paragraph 146.4(4)(l) of the Act is replaced by the following: (i) a periodic payment under an annuity contract described in paragraph ( i ) of the definition qualified investment in subsection 207.01(1) that is held by the plan trust at the beginning of the calendar year and that is paid to the plan trust in the calendar year, or (5) The portion of paragraph 146.4(5)(b) of the Act before subparagraph (i) is replaced by the following: (b) if the trust is not otherwise taxable under paragraph (a) on its taxable income for the year and, at any time in the year, it carries on one or more businesses or holds a property that is a non-qualified investment (as defined in subsection 207.01(1) ) for the trust, tax is payable under this Part by the trust on the amount that its taxable income for the year would be if it had no incomes or losses from sources other than those businesses and non-qualified investments , and no capital gains or losses other than from dispositions of non-qualified investments , and for this purpose, (6) Subsections (1) to (5) come into force on January 1, 2027. 45 (1) Subparagraph (c)(ii) of the definition advanced life deferred annuity in subsection 146.5(1) of the Act is replaced by the following: (ii) are payable for the life of the annuitant or for the lives, jointly, of the annuitant and spouse or common-law partner or former spouse or common-law partner of the annuitant ; (2) Subparagraph (d)(ii) of the definition advanced life deferred annuity in subsection 146.5(1) of the Act is amended by striking out “or” at the end of clause (A) and by adding the following after clause (B): (C) are reduced as a result of an amount required to be paid to an individual by reason of a provision of the law of Canada or a province applicable in respect of the division of property between the annuitant and the individual, on or after the breakdown of their marriage or common-law partnership, or (D) are increased on an actuarially equivalent basis in lieu of payments that would have otherwise been payable to the current or former spouse or common-law partner if the spouse or common-law partner is no longer entitled to an amount under the contract; (3) Subparagraph (f)(ii) of the definition advanced life deferred annuity in subsection 146.5(1) of the Act is replaced by the following: (ii) not exceed the amount, if any, determined by the formula A + B − C where A is the total of all amounts transferred to a licensed annuities provider to acquire the annuity, B is the amount of interest, if any, calculated in respect of the amount determined for A at a rate that (A) is required by the Pension Benefits Standards Act, 1985 or a similar law of a province, or (B) if clause (A) does not apply, does not exceed a reasonable rate, and C is the total amount of all annuity payments made under the annuity contract; (4) The definition advanced life deferred annuity in subsection 146.5(1) of the Act is amended by adding the following after paragraph (g): (g.1) it provides that an individual who is the spouse or common-law partner or former spouse or common-law partner of the annuitant is entitled to a payment under the contract that (i) is required by reason of a provision of the law of Canada or a province applicable in respect of the division of property between the annuitant and the individual, on or after the breakdown of their marriage or common-law partnership, in settlement of rights arising out of their marriage or common-law partnership, and (ii) is paid to the individual (A) in a single amount, (B) as periodic payments, or (C) as a direct transfer to (I) a registered retirement savings plan of the individual, (II) a registered retirement income fund of the individual, (III) an account of the individual under a pooled registered pension plan, or (IV) an account of the individual under a money purchase provision of a registered pension plan; (5) Paragraph (i) of the definition advanced life deferred annuity in subsection 146.5(1) of the Act is replaced by the following: (i) no right under the contract is capable of being assigned, charged, anticipated, given as security or surrendered, and for that purpose, assignment does not include (i) a payment described in paragraph (g.1), or (ii) a payment, made under a decree, order or judgment of a competent tribunal or written separation agreement in settlement of rights on the breakdown of the annuitant’s marriage or common-law partnership, of an amount to an individual for the benefit of the annuitant’s spouse or common-law partner, or former spouse or common-law partner, or for the benefit of the children of the annuitant or the current or former spouse or common-law partner; and (6) Section 146.5 of the Act is amended by adding the following after subsection (4): Taxable amount — marriage breakdown (4.1) The amount of a payment described in clause (g.1)(ii)(A) or (B) of the definition advanced life deferred annuity in subsection (1) that is paid to an individual shall be included in the income of the individual for the year of the payment. (7) The portion of subsection 146.5(5) of the Act before paragraph (a) is replaced by the following: Treatment of amount transferred (5) If an amount is refunded or paid in circumstances described in clause (g)(ii)(B) or (g.1)(ii)(C) of the definition advanced life deferred annuity in subsection (1), (8) Subsections (1) to (7) are deemed to have come into force on January 1, 2023. 46 (1) The definition deferred profit sharing plan in subsection 147(1) of the Act is replaced by the following: deferred profit sharing plan  means a profit sharing plan accepted by the Minister for registration for the purposes of this Act, on application therefor in prescribed manner by a trustee under the plan or an employer of employees who are beneficiaries under the plan, as complying with the requirements of this section; ( régime de participation différée aux bénéfices ) (2) Subsection (1) is deemed to have come into force on August 12, 2024. 47 The portion of subsection 147.1(12) of the Act after paragraph (b) is replaced by the following:   give notice (in this subsection and subsection 147.1(13) referred to as a “notice of revocation”) by registered mail to the plan administrator that the registration of the plan is revoked as of the date specified in the notice of revocation, which date may not be earlier than the date specified in the notice of intent or, if there is no notice of intent , the administrator’s application. 48 (1) Section 147.2 of the Act is amended by adding the following after subsection (8): Former employee (9) Subsection (10) applies to a member under a defined benefit provision of a registered pension plan if (a) the member was an employee of a participating employer under the provision; (b) the participating employer has permanently ceased to make contributions under the provision; (c) the member is not an employee of one of the other participating employers under the provision; and (d) the plan is not an individual pension plan (as defined in subsection 8300(1) of the Income Tax Regulations ). (10) If this subsection applies to a member of a defined benefit provision of a registered pension plan, then for the purposes of this section and any regulations made under subsection 147.1(18) in respect of eligible contributions, the member is deemed to be a former employee of each participating employer under the provision. (2) Subsection (1) is deemed to have come into force on August 15, 2025. 49 (1) The definition member in subsection 147.5(1) of the Act is replaced by the following: member , of a pooled pension plan, means an individual (other than a trust) who is a member of the plan under the Pooled Registered Pension Plans Act or a similar law of a province. ( participant ) (2) Section 147.5 of the Act is amended by adding the following after subsection (13): Amount included in income (13.1) If at any time in a taxation year a particular amount in respect of a member’s account under a pooled registered pension plan that is a spousal or common-law partner plan (as defined in subsection 146(1)) in relation to a taxpayer is required to be included in the income of the taxpayer’s spouse or common-law partner and the taxpayer is not living separate and apart from the taxpayer’s spouse or common-law partner at that time by reason of the breakdown of their marriage or common-law partnership, there shall be included at that time in computing the taxpayer’s income for the year an amount equal to the lesser of (a) the total of all amounts each of which is a premium (as defined in subsection 146(1)) paid by the taxpayer in the year or in one of the two immediately preceding taxation years to a registered retirement savings plan under which the taxpayer’s spouse or common-law partner was the annuitant (as defined in subsection 146(1)) at the time the premium was paid, and (b) the particular amount. Other attribution rules (13.2) Subsections 146(8.5) and (8.6) and paragraphs 146(8.7)(a) and (b) apply to a premium described in subsection (13.1) except that the references in subsections 146(8.5) to (8.7) to “subsection 146(8.3)” shall be read as references to “subsection 147.5(13.1)”. (3) Subsection (2) is deemed to have come into force on August 15, 2025. 50 (1) Subsection 149.1(1) of the Act is amended by adding the following in alphabetical order: registered foreign charity  means a person described in subparagraph (a)(v) of the definition qualified donee ; ( organisme de bienfaisance étranger enregistré ) (2) Paragraph 149.1(1.1)(d) of the Act is replaced by the following: (d) expenditures on administration, management and fundraising of the charity. (3) Subsection 149.1(6.3) of the Act is replaced by the following: Designation as public foundation, etc. (6.3) The Minister may, by notice sent by registered mail, or electronically if authorized in accordance with subsection 244(14.3) , to a registered charity, on the Minister’s own initiative or on application made to the Minister in prescribed form, designate the charity to be a charitable organization, private foundation or public foundation and the charity shall be deemed to be registered as a charitable organization, private foundation or public foundation, as the case may be, for taxation years commencing after the day of mailing or sending of the notice unless and until it is otherwise designated under this subsection or its registration is revoked under subsection (2), (3), (4) or (4.1) or 168(2). (4) Section 149.1 of the Act is amended by adding the following after subsection (14.1): Information returns (14.2) Every registered foreign charity must, within six months after the end of each taxation year of the charity and without notice or demand, file with the Minister a public information return for the year in prescribed form and containing prescribed information. (5) Paragraph 149.1(15)(a) of the Act is replaced by the following: (a) the information contained in a public information return referred to in subsection (14), (14.1) or (14.2) , and the filing status of information returns required by that subsection, must be communicated or otherwise made available to the public by the Minister in such manner as the Minister considers appropriate; (6) Subsections 149.1(22) and (23) of the Act are replaced by the following: Refusal to register (22) The Minister may by mail, or electronically if authorized in accordance with subsection 244(14.3) , give notice to a person that the application of the person for registration as a qualified donee referred to in subparagraph (a)(i) or (iii) or any of paragraphs (b) to (c) of the definition qualified donee in subsection (1) is refused. Annulment of registration (23) The Minister may by registered mail, or electronically if authorized in accordance with subsection 244(14.3) , give notice to a person that the registration of the person as a registered charity is annulled and deemed not to have been so registered, if the person was so registered by the Minister in error or the person has, solely as a result of a change in law, ceased to be a charity. (7) The portion of subsection 149.1(26) of the Act before paragraph (a) is replaced by the following: Foreign charities (26) For the purposes of subparagraph (a)(v) of the definition qualified donee in subsection (1), the Minister may register, in consultation with the Minister of Finance, a foreign charity for a 36 -month period that includes the time at which His Majesty in right of Canada has made a gift to the foreign charity, if (8) Subsections (1) and (4) are deemed to have come into force on April 17, 2024 and apply to taxation years that begin on or after that day. (9) Subsection (7) applies to registrations after April 16, 2024. 51 (1) Paragraph 150(1.1)(a) of the Act is replaced by the following: (a) the taxpayer was a registered charity throughout the year; or (2) Section 150 of the Act is amended by adding the following after subsection (1.4): Automated filing — conditions (1.5) The Minister may file a return of income for a taxation year of an individual (other than a trust or a deceased individual) resident in Canada throughout the year if the Minister is satisfied at the time of filing that the following conditions are met: (a) the individual has not notified the Minister not to file a return of income for the year on the individual’s behalf; (b) the individual has not filed a return of income for at least one of the three immediate preceding taxation years; (c) the individual has not filed a return of income for the year on or before the day that is 45 days after the filing-due date for the year; (d) all of the individual’s income for the year, if any, was reported in an information return filed with the Minister for the year; (e) the individual’s taxable income for the year does not exceed the lesser of (i) the amount determined by the formula A + B + C where A is the amount determined under subsection 118(1.1) for the year, B is the amount, if any, that may be deducted by the individual for the year under subsection 118(2), and C is the amount, if any, that may be deducted by the individual for the year under subsection 118.3(1), and (ii) the amount determined by the formula D + E + F where D is, in the case of an individual resident at the end of the year, in (A) Quebec, the amount determined for A in subparagraph (i), or (B) a province other than Quebec, the amount, if any, determined for the year under provincial income tax law similar in substance to subsection 118(1.1), E is, in the case of an individual resident at the end of the year, in (A) Quebec, the amount determined for B in subparagraph (i), or (B) a province other than Quebec, the amount, if any, determined for the year under provincial income tax law similar in substance to subsection 118(2), and F is, in the case of an individual resident at the end of the year, in (A) Quebec, the amount determined for C in subparagraph (i), or (B) a province other than Quebec, the amount, if any, determined for the year under provincial income tax law similar in substance to subsection 118.3(1); (f) the Minister has notified the individual of the information on file with the Minister for the year and the individual has not, within 90 days after the day on which the notice is mailed or sent electronically by the Minister, (i) otherwise filed a return of income for the year, or (ii) notified the Minister of corrections to be made to the information on file with the Minister that would cause any of the other conditions in this subsection not to be satisfied; (g) the individual has not become a bankrupt in the year; and (h) the individual meets such other conditions as designated by the Minister, if any. Automated filing — deemed filing (1.6) Subject to subsection (1.5), for the purposes of this Act (a) a return of income for a taxation year of an individual is deemed to have been filed by the individual at the time of its filing by the Minister in accordance with subsection (1.5); and (b) for greater certainty, any erroneous statement or omission in the return that is attributable to the individual’s failure to notify the Minister, within the 90-day period described in paragraph (1.5)(f) or at any other time prior to the filing of the return, of any correction to be made to the information on file with the Minister is a misrepresentation made by the individual in filing the return or in supplying any information under this Act. (3) Subsection (2) applies to the 2025 and subsequent taxation years. 52 (1) Subsection 150.1(4) of the Act is replaced by the following: Declaration (4) If a return of income of a taxpayer for a taxation year is filed by way of electronic filing by a particular person (in this subsection referred to as the “filer”) other than the person who is required to file the return, or the Minister if the return is filed pursuant to subsection 150(1.5) , the person who is required to file the return shall make an information return in prescribed form containing prescribed information, retain a copy of it and provide the filer with the information return, and that return and the copy shall be deemed to be a record referred to in section 230 in respect of the filer and the other person. (2) Subsection (1) applies to the 2025 and subsequent taxation years. 53 Paragraphs 152(6)(f.1) and (f.2) of the Act are replaced by the following: (f.1) a deduction under subsection 126(2) in respect of an unused foreign tax credit ( as defined in subsection 126(7)), or under subsection 126(2.22) in respect of foreign taxes paid, for a subsequent taxation year, 54 Paragraph 153(1)(g) of the Act is replaced by the following: (g) fees, commissions or other amounts for services, other than amounts described in subsection 212(5.1), 55 (1) The portion of subsection 160(5) of the Act before paragraph (a) is replaced by the following: Anti-avoidance rules (5) For the purposes of this section , if a person (referred to in this section as the “transferor”) has transferred property either directly or indirectly, by means of a trust or by any other means whatever to another person (referred to in this section as the “transferee”) in a transaction or as part of a series of transactions (2) Section 160 of the Act is amended by adding the following after subsection (5): Deemed transfer — conditions (6) Subsection (7) applies in respect of a transaction or series of transactions if, as part of the transaction or series of transactions, (a) a person (in this subsection referred to as the “planner”) has transferred property, either directly or indirectly, by means of a trust or by any other means whatever, to a person (in this subsection referred to as the “transferee”) or a person not dealing at arm’s length with the transferee, in accordance with the direction of, or with the concurrence of the transferee; (b) another person (in this subsection referred to as the “transferor”) has transferred a property (in this subsection referred to as the “particular property”), either directly or indirectly, by means of a trust or by any other means whatever, to the planner or any other person; and (c) it is reasonable to conclude that one of the purposes for undertaking or arranging the transaction or series of transactions is to avoid joint and several, or solidary, liability of the transferee and transferor for an amount payable under this Act. Deemed transfer (7) If this subsection applies in respect of a transaction or series of transactions, for the purposes of this section, the transferor (within the meaning of subsection (6)) is deemed to have transferred the particular property to the transferee (within the meaning of subsection (6)) as part of the transaction or series of transactions. (8) If a transaction or series of transactions is a section 160 avoidance transaction (as defined in subsection 160.01(1)), in determining the amount the transferee and transferor are jointly and severally, or solidarily, liable to pay under this section, the fair market value of the consideration given, if any, by the transferee for any transferred property is deemed to be nil if (a) the transaction or series of transactions is described in paragraph (a) or (c) of the definition section 160 avoidance transaction in subsection 160.01(1); or (b) it is reasonable to conclude that one of the purposes for undertaking or arranging the transaction or series of transactions is to avoid joint and several, or solidary, liability of the transferee and transferor for an amount payable under this Act. (3) Subsections (1) and (2) apply in respect of a transaction or series of transactions that occurs on or after April 16, 2024. 56 (1) The definitions transferee and transferor in subsection 160.01(1) of the Act are replaced by the following: transferee  has the meaning assigned by subsections 160(1), (5) and (7) . ( bénéficiaire du transfert ) transferor  has the meaning assigned by subsections 160(1), (5) and (7) . ( auteur du transfert ) (2) The definition section 160 avoidance transaction in subsection 160.01(1) of the Act is amended by striking out “or” at the end of paragraph (a), by adding “or” at the end of paragraph (b) and by adding the following after paragraph (b): (c) subsection 160(7) deems there to have been a transfer of property from the transferor to the transferee. ( opération d’évitement en vertu de l’article 160 ) (3) Subsections (1) and (2) apply in respect of a transaction or series of transactions that occurs on or after April 16, 2024. 57 (1) Subsection 163(2) of the Act is amended by adding the following after paragraph (c.6): (c.7) the amount if any by which (i) the amount that would be deemed by subsection 122.92(3) to be paid for the year by the person if that amount were calculated by reference to the information provided in the return or form filed for the year under that subsection exceeds (ii) the amount that is deemed by subsection 122.92(3) to be paid for the year by the person, (2) Subparagraph 163(5)(a)(ii) of the Act is replaced by the following: (ii) fails to file a return described in subparagraph (i) as and when required by this Act ; or (3) Subsection (1) applies in respect of returns of income filed on or after August 12, 2024. 58 (1) The portion of subsection 168(1) of the Act before paragraph (a) is replaced by the following: Notice of intention to revoke registration 168 (1) The Minister may by registered mail, or electronically if authorized in accordance with subsection 244(14.3) , give notice to a person described in any of paragraphs (a) to (c) of the definition qualified donee in subsection 149.1(1) that the Minister proposes to revoke its registration if the person (2) Paragraph 168(1)(c) of the Act is replaced by the following: (c) in the case of a registered charity, registered foreign charity , registered Canadian amateur athletic association or registered journalism organization, fails to file an information return as and when required under this Act or a regulation; (3) Subsection 168(2) of the Act is replaced by the following: Revocation of registration (2) If the Minister gives notice under subsection (1) to a registered charity, a registered Canadian amateur athletic association or a registered journalism organization, (a) if it has applied to the Minister in writing for the revocation of its registration, the Minister shall, forthwith after the mailing or sending of the notice, publish a copy of the notice on an internet webpage of the Government of Canada , and on that publication of a copy of the notice, the registration is revoked; (b) in any other case, the Minister may, after the expiration of 30 days from the day of mailing or sending of the notice, or after the expiration of such extended period from the day of mailing or sending of the notice as the Federal Court of Appeal or a judge of that Court, on application made at any time before the determination of any appeal pursuant to subsection 172(3) from the giving of the notice, may fix or allow, publish a copy of the notice on an internet webpage of the Government of Canada , and on that publication of a copy of the notice, the registration is revoked; and (c) the Minister shall maintain a permanent record of the notice and make the notice available to the public in such manner as the Minister considers appropriate. (4) The portion of subsection 168(4) of the Act before paragraph (a) is replaced by the following: Objection to proposal or designation (4) A person may, on or before the day that is 90 days after the day on which the notice was mailed or sent , serve on the Minister a written notice of objection in the manner authorized by the Minister, setting out the reasons for the objection and all the relevant facts, and the provisions of subsections 165(1), (1.1) and (3) to (7) and sections 166, 166.1 and 166.2 apply, with any modifications that the circumstances require, as if the notice were a notice of assessment made under section 152, if 59 Subsection 169(3) of the Act is replaced by the following: Disposition of appeal on consent (3) Notwithstanding section 152, the Minister may at any time, with the consent in writing of a particular taxpayer, reassess tax, interest, penalties or other amounts payable under this Act by the particular taxpayer for the purpose of disposing of an appeal (a) initiated by the particular taxpayer or any other taxpayer under a provision of this Act; or (b) following from a judgment rendered in an appeal referred to in paragraph (a). 60 (1) Paragraph 186(1)(b) of the Act is replaced by the following: (b) all amounts, each of which is an amount in respect of an assessable dividend received by the particular corporation in the year from a private corporation or a subject corporation that was a payer corporation connected with the particular corporation, equal to that proportion of the payer corporation’s dividend refund (within the meaning assigned by paragraph 129(1)(a), if this Act were read without reference to subsection 129(1.32) ) for its taxation year in which it paid the dividend that (i) the amount of the dividend received by the particular corporation ( excluding any amount subject to subsection 129(1.3) ) is of (ii) the total of all taxable dividends paid by the payer corporation in its taxation year in which it paid the dividend and at a time when it was a private corporation or a subject corporation ( excluding any amount subject to subsection 129(1.3) ) (2) Subsection (1) is deemed to have come into force on November 4, 2025. 61 Paragraph (c) of the description of B in subsection 188(1.1) of the Act is replaced by the following: (c) an amount in respect of a property transferred by the charity during the winding-up period and not later than the latter of one year from the end of the taxation year and the day, if any, referred to in subparagraph (1.2)(b)(iii) , to a person that was at the time of the transfer an eligible donee in respect of the charity, equal to the amount, if any, by which the fair market value of the property, when transferred, exceeds the consideration given by the person for the transfer. 62 Subsection 188.1(6) of the Act is replaced by the following: Failure to file information returns (6) Every registered charity, registered foreign charity , registered Canadian amateur athletic association and registered journalism organization that fails to file a return for a taxation year as and when required by subsection 149.1(14), (14.1) or (14.2) is liable to a penalty equal to $500. 63 (1) The portion of subsection 188.2(1) of the Act before paragraph (a) is replaced by the following: Notice of suspension with assessment 188.2 (1) The Minister shall, with an assessment referred to in this subsection, give notice by registered mail, or electronically if authorized in accordance with subsection 244(14.3) , to a registered charity, registered Canadian amateur athletic association or registered journalism organization that its authority to issue an official receipt referred to in Part XXXV of the Income Tax Regulations is suspended for one year from the day that is seven days after the day on which the notice is mailed or sent , if the Minister has assessed the charity, association or organization for a taxation year for (2) The portion of subsection 188.2(2) of the Act before paragraph (a) is replaced by the following: Notice of suspension — general (2) The Minister may give notice by registered mail, or electronically if authorized in accordance with subsection 244(14.3) , to a person referred to in any of paragraphs (a) to (c) of the definition qualified donee in subsection 149.1(1) that the authority of the person to issue an official receipt referred to in Part XXXV of the Income Tax Regulations is suspended for one year from the day that is seven days after the day on which the notice is mailed or sent (3) Subsection 188.2(2.1) of the Act is replaced by the following: Suspension — failure to report (2.1) If a registered charity, a registered foreign charity , a registered Canadian amateur athletic association or a registered journalism organization fails to report information that is required to be included in a return filed under subsection 149.1(14), (14.1) or (14.2) , the Minister may give notice by registered mail, or electronically if authorized in accordance with subsection 244(14.3) , to the charity, association or organization that its authority to issue an official receipt referred to in Part XXXV of the Income Tax Regulations is suspended from the day that is seven days after the day on which the notice is mailed or sent until such time as the Minister notifies the charity, association or organization that the Minister has received the required information in prescribed form. (4) Paragraph 188.2(3)(a) of the English version of the Act is replaced by the following: (a) the qualified donee is deemed, in respect of gifts made and property transferred to the qualified donee within the one-year period that begins on the day that is seven days after the day on which the notice is mailed or sent , not to be a qualified donee for the purposes of subsections 110.1(1) and 118.1(1) and Part XXXV of the Income Tax Regulations ; and 64 Subsection 189(8) of the Act is amended by striking out “and” at the end of paragraph (a) and by replacing paragraph (b) with the following: (b) the reference in each of subsections 165(2) and 166.1(3) to the expression “Chief of Appeals in a District Office or a Taxation Centre” is to be read as a reference to the expression “Appeals Branch”; and (c) despite subsections 165(2) and 166.1(3), a person may serve a notice of objection under subsection 165(1) or make an application under subsection 166.1(1) in any manner authorized by the Minister. 65 (1) The definition debt obligation in section 204 of the Act is repealed. (2) The definition qualified investment in section 204 of the Act is replaced by the following: qualified investment  for a trust governed by a deferred profit sharing plan or revoked plan means, with the exception of excluded property in relation to the trust, (a) an investment described in any of paragraphs (a) to (g) of the definition qualified investment in subsection 207.01(1), (b) an investment described under section 5001, any of paragraphs 5002(a) to (c) or section 5003 or 5004 of the Income Tax Regulations , other than an investment described in any of paragraphs 5006(a) to (e) if the references in those paragraphs to “a connected person under the registered plan” were read as references to “a beneficiary or an employer under the deferred profit sharing plan or revoked plan and any person who does not deal at arm’s length with that person”, (c) equity shares of a corporation by which, before the date of acquisition by the trust of the shares, payments have been made in trust to a trustee under the plan for the benefit of beneficiaries under the plan, if the shares are of a class in respect of which (i) there is no restriction on their transferability, and (ii) in each of four taxation years of the corporation in the period of the corporation’s five consecutive taxation years that ended less than 12 months before the date of acquisition of the shares by the trust, and in the corporation’s last taxation year in that period, the corporation (A) paid a dividend on each share of the class of an amount not less than 4% of the cost per share of the shares to the trust, or (B) had earnings attributable to the shares of the class of an amount not less than the amount obtained when 4% of the cost per share to the trust of the shares is multiplied by the total number of shares of the class that were outstanding immediately after the acquisition, and (d) a contract with a licensed annuities provider for an annuity payable to an employee who is a beneficiary under the plan beginning not later than the end of the year in which the employee attains 71 years of age, the guaranteed term of which, if any, does not exceed 15 years; ( placement admissible ) (3) Subsections (1) and (2) come into force on January 1, 2027. 66 (1) The portion of subsection 204.6(1) of the Act before the formula is replaced by the following: Tax payable 204.6 (1) If at the end of any month a taxpayer that is a registered investment described in paragraph 204.4(2)(b), (d) or (f) ( other than a taxpayer that is a trust described in paragraph 4900(1)(d.21) or (d.22) of the Income Tax Regulations ) holds property that is not a prescribed investment for that taxpayer, it shall, in respect of that month, pay a tax under this Part equal to the total of all amounts each of which is an amount determined in respect of such a property by the formula (2) The portion of subsection 204.6(2) of the Act before paragraph (a) is replaced by the following: Tax payable (2) Where at the end of any month a taxpayer that is a registered investment described in paragraph 204.4(2)(a) or (b) ( other than a taxpayer that is a trust described in paragraph 4900(1)(d.21) or (d.22) of the Income Tax Regulations ) holds property that is a share, bond, mortgage, hypothecary claim or other security of a corporation or debtor (other than bonds, mortgages, hypothecary claims and other securities of or guaranteed by His Majesty in right of Canada or a province or Canadian municipality), it shall, in respect of that month, pay a tax under this Part equal to 1% of the amount, if any, by which (3) The portion of subsection 204.6(3) of the Act before paragraph (a) is replaced by the following: Tax payable — real property or immovables (3) If at the end of any month a taxpayer that is a registered investment described in paragraph 204.4(2)(a) ( other than a taxpayer that is a trust described in paragraph 4900(1)(d.21) or (d.22) of the Income Tax Regulations ) holds real or immovable property, it shall, in respect of that month, pay a tax under this Part equal to 1% of the total of all amounts each of which is the amount by which the excess of (4) Part X.2 of the Act is repealed. (5) Subsections (1) to (3) are deemed to have come into force on November 4, 2025. (6) Subsection (4) comes into force on January 1, 2027. 67 (1) Paragraph (a) of the definition reserve in subsection 204.8(1) of the Act is replaced by the following: (a) property described in paragraph (a), (b), any of subparagraphs (c)(i) to (iv) or paragraph (f) of the definition qualified investment in subsection 207.01(1) , and (2) Subsection (1) comes into force on January 1, 2027. 68 (1) Subsection 204.94(1) of the Act is replaced by the following: Definitions 204.94 (1) The definitions in subsection 146.1(1) apply for the purposes of this Part, except that the definition subscriber in that subsection shall be read without reference to its paragraphs (c) and (d) . (2) The portion of subsection 204.94(2) of the Act before the formula is replaced by the following: Charging provision (2) Every person (other than a public primary caregiver that is exempt from tax under Part I or a designated subscriber ) shall pay a tax under this Part for each taxation year equal to the amount determined by the formula 69 (1) The description of C in the definition excess ALDA transfer in subsection 205(1) of the Act is replaced by the following: C is the amount , at the end of the calendar year preceding the calendar year in which the transfer is made, equal to (a) if the transferor plan is a registered pension plan, a deferred profit sharing plan or a pooled registered pension plan, the total value of the property held for the benefit of the individual under the transferor plan other than property held in connection with (i) a defined benefit provision (as defined in subsection 147.1(1)) of a registered pension plan, (ii) a VPLA fund, as described in subsection 8506(13) of the Income Tax Regulations , or (iii) benefits that would be described in paragraph 147.5(5)(a) if the reference in that paragraph to “8506(1)(e.1) or (e.2)” were read as a reference to “8506(1)(e.2)”, and (b) if the transferor plan is a registered retirement income fund or a registered retirement savings plan, the total value of property under all reg is tered retirement income funds and registered retirement savings plans under which the individual is an annuitant , other than contracts for annuities held in connection with the fund or plan that are not described in paragraph (b.1) of the definition qualified investment in subsection 146.3(1) or in paragraph (c.1) of the definition qualified investment in subsection 146(1), (2) Paragraph (b) of the description of C in the definition excess ALDA transfer in subsection 205(1) of the Act, as enacted by subsection (1), is replaced by the following: (b) if the transferor plan is a registered retirement income fund or a registered retirement savings plan, the total value of property under all registered retirement income funds and registered retirement savings plans under which the individual is an annuitant, other than contracts for annuities held in connection with the fund or plan that are not described in paragraph (g) of the definition qualified investment in subsection 207.01(1), (3) Subsection (1) is deemed to have come into force on August 12, 2024. (4) Subsection (2) comes into force on January 1, 2027. 70 (1) The portion of subsection 207.01(1) of the Act before the first definition is replaced by the following: Definitions 207.01 (1) The following definitions and the definitions in subsections 146(1) (other than the definition benefit ), 146.1(1), 146.2(1), 146.3(1), 146.4(1) and 146.6(1) apply in this Part and Part L of the Income Tax Regulations . (2) The definition qualified investment in subsection 207.01(1) of the Act is replaced by the following: qualified investment  for a trust governed by a registered plan means (a) money (other than money the fair market value of which exceeds its stated value as legal tender in the country of issuance or money that is held for its numismatic value) and deposits (within the meaning assigned by the Canada Deposit Insurance Corporation Act or with a branch in Canada of a bank) of such money standing to the credit of the trust; (b) a guaranteed investment certificate issued by a trust company incorporated under the laws of Canada or of a province; (c) a bond, debenture, note or similar obligation (i) described in paragraph (a) of the definition fully exempt interest in subsection 212(3), (ii) issued by a corporation, mutual fund trust or limited partnership the shares or units of which are listed on a designated stock exchange in Canada, (iii) issued by a corporation the shares of which are listed on a designated stock exchange outside Canada, (iv) issued by an authorized foreign bank and payable at a branch in Canada of the bank, (v) that was issued as part of a single issue of debt of at least $25 million and has an investment grade rating from a prescribed credit rating agency (or had such a rating at the time it was acquired by the trust), (vi) that was issued on a continuous basis under a debt issuance program, provided that at least $25 million of debt under the program had been issued and is outstanding and it has an investment grade rating from a prescribed credit rating agency (or had such a rating at the time it was acquired by the trust), (vii) that was acquired by the trust in exchange for a bond, debenture, note or similar obligation that satisfied the condition in subparagraph (v) or (vi) as part of a proposal or an arrangement that has been approved by a court under the Bankruptcy and Insolvency Act or the Companies’ Creditors Arrangement Act , or (viii) issued by a public corporation (other than a mortgage investment corporation); (d) a security (other than a future contract or other derivative instrument in respect of which the holder’s risk of loss may exceed the holder’s cost) that is listed on a designated stock exchange; (e) a share of the capital stock of a public corporation (other than a mortgage investment corporation); (f) an investment contract described in subparagraph (b)(ii) of the definition retirement savings plan in subsection 146(1) and issued by a corporation approved by the Governor in Council for the purposes of that subparagraph; (g) a contract for an annuity issued by a licensed annuities provider if (i) the trust is the only person that, disregarding a subsequent transfer of the contract by the trust, is or may become entitled to an annuity payment under the contract, and (ii) the holder of the contract has a right to surrender the contract at any time for an amount that would, if reasonable sales and administration charges were ignored, approximate the value of funds that could otherwise be applied to fund future periodic payments under the contract; (h) if the registered plan is a RESP, an investment that was acquired by the trust before October 28, 1998; (i) if the registered plan is a RDSP, a contract for an annuity issued by a licensed annuities provider if (i) annual or more frequent periodic payments are or may be made under the contract to the holder of the contract, (ii) the trust is the only person who, disregarding any subsequent transfer of the contract by the trust, is or may become entitled to any annuity payments under the contract, (iii) neither the time nor the amount of any payment under the contract may vary because of the length of any life, other than the life of the beneficiary under the RDSP (in this paragraph referred to as the “RDSP beneficiary”), (iv) the day on which the periodic payments began or are to begin is not later than the end of the later of (A) the year in which the RDSP beneficiary attains the age of 60 years, and (B) the year following the year in which the contract was acquired by the trust, (v) the periodic payments are payable for the life of the RDSP beneficiary and either there is no guaranteed period under the contract or there is a guaranteed period that does not exceed 15 years, (vi) the periodic payments (A) are equal, or (B) are not equal solely because of one or more adjustments that would, if the contract were an annuity under a retirement savings plan, be in accordance with subparagraphs 146(3)(b)(iii) to (v) or that arise because of a uniform reduction in the entitlement to the periodic payments as a consequence of a partial surrender of rights to the periodic payments, and (vii) the contract requires that, in the event the plan must be terminated in accordance with paragraph 146.4(4)(p), any amounts that would otherwise be payable after the termination be commuted into a single payment; (j) if the registered plan is a RRIF, a contract for an annuity issued by a licensed annuities provider if (i) annual or more frequent periodic payments are or may be made under the contract to the holder of the contract, (ii) the trust is the only person who, disregarding any subsequent transfer of the contract by the trust, is or may become entitled to any annuity payments under the contract, (iii) neither the time nor the amount of any payment under the contract may vary because of the length of any life, other than (A) if the annuitant under the RRIF (in this paragraph referred to as the “RRIF annuitant”) has made the election referred to in the definition retirement income fund in subsection 146.3(1) in respect of the fund and a spouse or common-law partner, the life of the RRIF annuitant or the life of the spouse or common-law partner, and (B) in any other case, the life of the RRIF annuitant, (iv) the day on which the periodic payments began or are to begin (in this paragraph referred to as the “start date”) is not later than the end of the year following the year in which the contract was acquired by the trust, (v) either (A) the periodic payments are payable for the life of the RRIF annuitant or the joint lives of the RRIF annuitant and the RRIF annuitant’s spouse or common-law partner and either there is no guaranteed period under the contract or there is a guaranteed period that begins at the start date and does not exceed a term equal to 90 years minus the lesser of (I) the age in whole years at the start date of the RRIF annuitant (determined on the assumption that the RRIF annuitant is alive at the start date), and (II) the age in whole years at the start date of a spouse or common-law partner of the RRIF annuitant (determined on the assumption that a spouse or common-law partner of the RRIF annuitant at the time the contract was acquired is a spouse or common-law partner of the RRIF annuitant at the start date), or (B) the periodic payments are payable for a term equal to (I) 90 years minus the age described in subclause (A)(I), or (II) 90 years minus the age described in subclause (A)(II), and (vi) the periodic payments (A) are equal, or (B) are not equal solely because of one or more adjustments that would, if the contract were an annuity under a retirement savings plan, be in accordance with subparagraphs 146(3)(b)(iii) to (v) or that arise because of a uniform reduction in the entitlement to the periodic payments as a consequence of a partial surrender of rights to the periodic payments; (k) if the registered plan is a RRSP, a contract for an annuity issued by a licensed annuities provider if it (i) is described in the definition retirement income in subsection 146(1) in respect of the annuitant under the RRSP (in this paragraph referred to as the “RRSP annuitant”), or (ii) meets the following conditions: (A) annual or more frequent periodic payments are or may be made under the contract to the holder of the contract, (B) the trust is the only person who, disregarding any subsequent transfer of the contract by the trust, is or may become entitled to any annuity payments under the contract, (C) neither the time nor the amount of any payment under the contract may vary because of the length of any life, other than the life of the RRSP annuitant, (D) the day on which the periodic payments began or are to begin (in this subparagraph referred to as the “start date”) is not later than the end of the year in which the RRSP annuitant attains 72 years of age, (E) either (I) the periodic payments are payable for the life of the RRSP annuitant and either there is no guaranteed period under the contract or there is a guaranteed period that begins at the start date and does not exceed a term equal to 90 years minus the lesser of 1 the age in whole years at the start date of the RRSP annuitant (determined on the assumption that the RRSP annuitant is alive at the start date), and 2 the age in whole years at the start date of a spouse or common-law partner of the RRSP annuitant (determined on the assumption that a spouse or common-law partner of the RRSP annuitant at the time the contract was acquired is a spouse or common-law partner of the RRSP annuitant at the start date), or (II) the periodic payments are payable for a term equal to 1 90 years minus the age described in sub-subclause (I)1, or 2 90 years minus the age described in sub-subclause (I)2, and (F) the periodic payments (I) are equal, or (II) are not equal solely because of one or more adjustments that would, if the contract were an annuity under a retirement savings plan, be in accordance with subparagraphs 146(3)(b)(iii) to (v) or that arise because of a uniform reduction in the entitlement to the periodic payments as a consequence of a partial surrender of rights to the periodic payments; and (l) a prescribed investment. ( placement admissible ) (3) Paragraph (c) of the definition controlling individual in subsection 207.01(1) of the Act is replaced by the following: (c) a subscriber of a RESP, other than a designated subscriber ; (4) Paragraphs (a) and (b) of the definition excluded property in subsection 207.01(1) of the Act are replaced by the following: (a) property described in subparagraph 5001(h)(ii) of the Income Tax Regulations ; (b) an equity of a mutual fund corporation or mutual fund trust if (i) either (A) the equity is equity of a mutual fund corporation or mutual fund trust that derives all or substantially all its value from one or more mutual funds that are subject to, and substantially comply with, the requirements of National Instrument 81- 102 Investment Funds , as amended from time to time, of the Canadian Securities Administrators, or (B) the corporation or trust follows a reasonable policy of investment diversification, (ii) the time is (A) during the 24-month period that begins on the day on which the first taxation year of the corporation or trust begins, (B) during the 24-month period that ends on the day on which the last taxation year of the corporation or trust ends, or (C) where the equity is a share of the capital stock of a mutual fund corporation and the share derives all or substantially all its value from a particular mutual fund, (I) during the 24-month period that begins on the day on which the particular mutual fund is established, or (II) during the 24-month period that ends on the day on which the particular mutual fund is terminated, (iii) it is reasonable to conclude that none of the main purposes of the structure of the corporation or trust, or of the terms and conditions of the equity, is to accommodate transactions or events that could affect the fair market value of the property held by the trust governed by the registered plan in a manner that would not occur in a normal commercial or investment context in which parties deal with each other at arm’s length and act prudently, knowledgeably and willingly, and (iv) it is reasonable to conclude that none of the main purposes of the incorporation, establishment or operation of the corporation or trust, or of the particular mutual fund, is to benefit from this paragraph; or (5) Paragraph 207.01(12)(c) of the Act is replaced by the following: (c) the property is, or would be if it were not a prohibited investment at the time it was acquired by the exchanging trust , a qualified investment for the exchanging trust immediately after the exchange time; and (6) Subsections (1), (2), (4) and (5) come into force on January 1, 2027. 71 (1) Paragraph 207.04(7)(a) of the Act is replaced by the following: (a) the security lent or transferred under the arrangement is described in paragraph (d) of the definition qualified investment in subsection 207.01(1) ; (2) Paragraph 207.04(7)(f) of the Act is replaced by the following: (f) property that is described in paragraph (a) or subparagraph (c)(i) of the definition qualified investment in subsection 207.01(1) that is of equivalent value to the security lent under the arrangement is held in trust for the benefit of the lender and is to be distributed to the lender in the event that an identical security (within the meaning assigned by paragraph (b) of the definition securities lending arrangement in subsection 260(1)) is not transferred or returned to the lender under the arrangement; and (3) Subsections (1) and (2) come into force on January 1, 2027. 72 (1) The portion of the definition prohibited investment in subsection 207.5(1) of the Act before paragraph (a) is replaced by the following: prohibited investment , for a retirement compensation arrangement at any time, means property (other than excluded property) that is at that time (2) The portion of paragraph (a) of the definition specified arrangement in subsection 207.5(1) of the Act before subparagraph (i) is replaced by the following: (a) to supplement the benefits provided out of or under (3) Subsection 207.5(1) of the Act is amended by adding the following in alphabetical order: excluded property  has the same meaning as in subsection 207.01(1), if that definition were read without reference to the words “registered investment” and if (a) the portion of paragraph (b) before subparagraph (i) were read as follows: “ (b) an equity of a mutual fund corporation, an investment corporation, a mutual fund trust or a trust described in paragraph 204.4(2)(a) if”, (b) each reference to “controlling individual” were read as a reference to “specified beneficiary”, and (c) each reference to “registered plan” were read as a reference to “retirement compensation arrangement”; ( bien exclu ) (4) The portion of the definition excluded property in subsection 207.5(1) of the Act before paragraph (b), as enacted by subsection (3), is replaced by the following: excluded property  has the same meaning as in subsection 207.01(1), if (a) the portion of paragraph (b) before subparagraph (i) were read as follows: “ (b) an equity of a mutual fund corporation, an investment corporation, or a mutual fund trust if”; (5) Subsections (1) and (3) are deemed to have come into force on August 12, 2024. (6) Subsection (2) is deemed to have come into force on March 28, 2023. (7) Subsection (4) comes into force on January 1, 2027. 73 (1) Paragraph (d) of the definition excluded trust in subsection 211.6(1) of the Act is replaced by the following: (d) if the trust is not a trust to which paragraph (e) applies, acquires at that time any property that is not described in any of paragraphs (a) and (b) and subparagraph (c)(i) of the definition qualified investment in subsection 207.01(1) ; (2) Subparagraph (e)(i) of the definition excluded trust in subsection 211.6(1) of the Act is replaced by the following: (i) acquires at that time any property that is not described in any of paragraphs (a) and (b), subparagraphs (c)(i) to (vii) and paragraph (d) of the definition qualified investment in subsection 207.01(1) , or (3) Paragraph (a) of the definition prohibited investment in subsection 211.6(1) of the Act is replaced by the following: (a) at the time it was acquired by the trust, was described in any of subparagraphs (c)(ii) to (vii) or paragraph (d) of the definition qualified investment in subsection 207.01(1) ; and (4) Subsections (1) to (3) come into force on January 1, 2027. 74 (1) The portion of subsection 211.8(1) of the Act before paragraph (a) is replaced by the following: Disposition of approved share 211.8 (1) If an approved share of the capital stock of a registered labour-sponsored venture capital corporation or a revoked corporation is, before the first discontinuation of its venture capital business, redeemed, acquired or cancelled by the corporation less than eight years after the day on which the share was issued (other than in circumstances described in subclause 204.81(1)(c)(v)(A)(I) or (III) or clause 204.81(1)(c)(v)(B) or (D) or other than if the share is a Class A share of the capital stock of the corporation that is exchanged for another Class A share of the capital stock of the corporation as part of a qualifying exchange) or any other share that was issued by any other prescribed labour-sponsored venture capital corporation is disposed of, the person who was the shareholder immediately before the redemption, acquisition, cancellation or disposition shall pay a tax under this Part equal to the lesser of (2) Subparagraph (ii) of the description of A in paragraph 211.8(1)(a) of the Act is replaced by the following: (ii) where the share was issued by any other prescribed labour-sponsored venture capital corporation and was at any time an approved share, the amount, if any, required to be remitted to the government of a province as a consequence of the redemption, acquisition, cancellation or disposition (otherwise than as a consequence of an increase in the corporation’s liability for a penalty under a law of the province), and 75 Subsection 212(17.1) of the Act is repealed. 76 (1) Subsection 220(3.1) of the Act is replaced by the following: Waiver of penalty or interest (3.1) The Minister may, on or before the day that is 10 calendar years after the end of a taxation year of a taxpayer (or in the case of a partnership, a fiscal period of the partnership) or on application by the taxpayer or partnership on or before that day, waive or cancel all or any portion of any penalty or interest otherwise payable under this Act ( other than a penalty under section 231.7 or any interest payable in respect of that penalty ) by the taxpayer or partnership in respect of that taxation year or fiscal period, and notwithstanding subsections 152(4) to (5), any assessment of the interest and penalties payable by the taxpayer or partnership shall be made that is necessary to take into account the cancellation of the penalty or interest. (2) The portion of subsection 220(3.3) of the French version of the Act before paragraph (a) is replaced by the following: Date présumée d’un choix modifié, annulé ou produit en retard (3.3) Lorsque le ministre, en vertu du paragraphe (3.2) , proroge le délai pour faire un choix ou permet qu’un choix soit modifié ou annulé, les présomptions suivantes s’appliquent : 77 The portion of section 231 of the Act before the first definition is replaced by the following: Definitions 231 In sections 231.1 to 231.9 , 78 (1) The portion of subsection 231.1(1) of the Act before paragraph (a) is replaced by the following: Information gathering 231.1 (1) An authorized person may, at all reasonable times, for any purpose related to the administration or enforcement of this Act ( including the collection of any amount payable under this Act by any person), of a listed international agreement or, for greater certainty, of a tax treaty with another country , (2) Subsection 231.1(1) of the Act is amended by striking out “and” at the end of paragraph (d), by adding “and” at the end of paragraph (e) and by adding the following after paragraph (e): (f) subject to subsection (4), require a taxpayer or any other person to provide and deliver, in a reasonable manner, within a reasonable period of time, (i) any information or additional information, including a return of income or a supplementary return, or (ii) any document. (3) Section 231.1 of the Act is amended by adding the following after subsection (3): Not applicable to unnamed persons (4) An authorized person shall not impose on a taxpayer or any other person a requirement under paragraph (1)(f) to provide information or any document relating to one or more unnamed persons for which an application under subsection 231.2(3) would be required if the information or document were sought under a notice of requirement under section 231.2. 79 (1) The portion of subsection 231.2(1) of the Act before paragraph (a) is replaced by the following: Requirement to provide documents or information 231.2 (1) Notwithstanding any other provision of this Act, the Minister may, subject to subsection (2), for any purpose related to the administration or enforcement of this Act (including the collection of any amount payable under this Act by any person), of a listed international agreement or, for greater certainty, of a tax treaty with another country, by notice sent or served in accordance with subsection (1.1), require that any person provide, within such reasonable time and in such reasonable manner as is stipulated in the notice, (2) Paragraph 231.2(3)(b) of the Act is replaced by the following: (b) the requirement is made (i) to verify compliance by the person or persons in the group with any duty or obligation under this Act, or (ii) for a purpose related to the administration of a listed international agreement or, for greater certainty, of a tax treaty with another country. 80 Section 231.5 of the Act is replaced by the following: Copies 231. 5 If any document is seized, inspected, audited, examined or provided under any of sections 231.1 to 231.4 and 231.6 , the person by whom it is seized, inspected, audited or examined or to whom it is provided or any officer of the Canada Revenue Agency may make, or cause to be made, one or more copies thereof and, in the case of an electronic document, make or cause to be made, a print-out of the electronic document, and any document purporting to be certified by the Minister or an authorized person to be a copy of the document, or to be a print-out of an electronic document, made under this section is evidence of the nature and content of the original document and has the same probative force as the original document would have if it were proven in the ordinary way. Compliance 231. 51 No person shall, physically or otherwise, interfere with, hinder or molest an official ( as defined in subsection 241(10)) doing anything that the official is authorized to do under this Act or attempt to interfere with, hinder or molest any official doing or prevent or attempt to prevent an official from doing, anything that the official is authorized to do under this Act, and every person shall, unless the person is unable to do so, do everything that the person is required to do by or under sections 231.1 to 231.6 . 81 (1) Subsections 231.6(1) and (2) of the Act are replaced by the following: Definition of foreign-based information or document 231.6 (1) For the purposes of this section, foreign-based information or document means any information or document that is available or located outside Canada and that may be relevant to the administration or enforcement of this Act (including the collection of any amount payable under this Act by any person), of a listed international agreement or, for greater certainty, of a tax treaty with another country . Requirement to provide foreign-based information (2) Notwithstanding any other provision of this Act, the Minister may, by notice sent or served in accordance with subsection (3.1), require that a person resident in Canada or a non-resident person carrying on business in Canada provide and deliver, within such reasonable time and in such reasonable manner as is stipulated in the notice , any foreign-based information or document. (2) Paragraph 231.6(3)(a) of the Act is replaced by the following: (a) a reasonable period of time of not less than 90 days after the notice is sent or served for the production of the information or document; (3) Paragraph 231.6(3)(c) of the French version of the Act is replaced by the following: c) préciser les conséquences prévues au paragraphe (8) du défaut de fournir les renseignements ou documents étrangers recherchés dans le délai prévu dans l’avis . (4) Subsection 231.6(5) of the Act is amended by adding “or” at the end of paragraph (a) and by replacing paragraphs (b) and (c) with the following: (b) vary or set aside the requirement if the judge determines that the requirement is unreasonable. (5) Subsections 231.6(6) and (7) of the Act are replaced by the following: Unreasonableness (6) For the purposes of paragraph (5)( b ), the requirement to provide the information or document shall not be considered to be unreasonable because the information or document is under the control of or available to a non-resident person that is not controlled by the person who is sent or served with the notice of the requirement under subsection (2) if that person is related to the non-resident person. (6) Subsection 231.6(8) of the Act is replaced by the following: Consequence of failure (8) If a person fails to comply substantially with a notice sent or served under subsection (2) and if the notice is not set aside by a judge under subsection (5), any court having jurisdiction in a civil proceeding relating to the administration or enforcement of this Act, of a listed international agreement or, for greater certainty, of a tax treaty with another country , shall, on motion of the Minister, prohibit the introduction by that person of any foreign-based information or document covered by that notice. 82 (1) Subsection 231.7(1) of the Act is replaced by the following: Compliance order 231.7 (1) On summary application by the Minister, a judge may, notwithstanding subsection 238(2), order a person to provide any access, assistance, information or document sought by the Minister under section 231.1, 231.2 or 231.6, and answer all questions either orally or in writing as required by paragraph 231.1(1)(d) , if the judge is satisfied that (a) the person was required under (i) section 231.1, 231.2 or 231.6 to provide the access, assistance, information or document and did not do so, or (ii) paragraph 231.1(1)(d) to answer questions orally or in writing and the person did not do so; and (b) in the case of information, a document or an answer to a question , the information, document or answer is not protected from disclosure by solicitor-client privilege. (2) Section 231.7 of the Act is amended by adding the following after subsection (5): Penalties (6) If an order under subsection (1) is made in respect of a taxpayer’s failure to comply with a requirement under section 231.1, 231.2 or 231.6 in respect of a taxation year of the taxpayer, the taxpayer is, in addition to any penalty otherwise provided, liable to a penalty equal to 10% of the aggregate amount of tax payable by the taxpayer under this Act for each taxation year of the taxpayer to which the order relates. Penalty does not apply (7) Subsection (6) does not apply (a) to an order made in respect of a taxpayer’s failure to comply with a requirement to provide information or documents or to answer questions, if one of the reasons for not complying with the requirement was the taxpayer’s reasonable belief that the information, documents or answers were protected from disclosure by solicitor-client privilege; or (b) if the amount of tax payable by the taxpayer under this Act for each taxation year to which the order under subsection (1) relates is less than $50,000. Make application at any time (8) The Minister may apply for a compliance order under subsection (1) before or after sending a notice described under subsection 231.9(1). Assessment (9) The Minister may at any time assess any amount payable under subsection (6) by any person and, if the Minister makes such an assessment, the provisions of Divisions I and J of Part I apply, with such modifications as the circumstances require, in respect of the assessment as though it had been made under section 152. Requirement to vacate or vary assessment (10) If the Minister determines that a penalty under subsection (6) is disproportionate or unfair, the Minister shall waive or cancel all or part of the penalty (and any related interest) that the Minister considers is appropriate having regard to all the circumstances and, despite subsections 152(4) to (5), any assessment of the penalty and interest payable shall be made that is necessary to take into account the cancellation of all or part of the penalty or interest. 83 Section 231.8 of the Act is replaced by the following: Time period not to count 231.8 (1) The following periods of time shall not be counted in the computation of the period of time within which an assessment may be made for a taxation year of a taxpayer under subsection 152(4): (a) if the taxpayer, or a person that does not deal at arm’s length with the taxpayer, is required to do something under subsection 231.1(1) in respect of the taxation year of the taxpayer, the period of time between the day on which an application for judicial review in respect of the requirement is made and the day on which the application is finally disposed of; (b) if the taxpayer, or a person that does not deal at arm’s length with the taxpayer , is sent or served with a notice of a requirement under subsection 231.2(1) in respect of the taxation year of the taxpayer , the period of time between the day on which an application for judicial review in respect of the requirement is made and the day on which the application is finally disposed of; (c) if the taxpayer, or a person that does not deal at arm’s length with the taxpayer, is sent or served with a notice of requirement under subsection 231.6(2) in respect of the taxation year of the taxpayer, the period of time between the day on which the taxpayer or the non-arm’s length person applies to a judge for review under subsection 231.6(4) and the day on which the application is finally disposed of; (d) if an application is commenced by the Minister under subsection 231.7(1) to order the taxpayer, or a person that does not deal at arm’s length with the taxpayer , to provide any access, assistance, information or document in respect of the taxation year of the taxpayer , the period of time between the day on which the taxpayer or the non-arm’s length person files a notice of appearance, or otherwise opposes the application, and the day on which the application is finally disposed of; (e) if the taxpayer, or a person that does not deal at arm’s length with the taxpayer, is sent or served with a notice of non-compliance under subsection 231.9(1) in respect of the taxation year of the taxpayer, the period of time that the notice of non-compliance is outstanding; and (f) if, under subsection 231.9(10), a judge has vacated a notice of non-compliance sent to, or served on, the taxpayer, or a person that does not deal at arm’s length with the taxpayer in respect of the taxation year of the taxpayer, the period of time between the day on which the taxpayer or the non-arm’s length person applies to a judge for review under subsection 231.9(9) and the day on which the application is finally disposed of. When finally disposed of (2) For the purposes of subsection (1), an application is finally disposed of when the application is disposed of and the time to appeal the application has expired and, in the case of an appeal, when the appeal and any further appeal is disposed of or the time for filing any further appeal has expired. Notice of non-compliance 231.9 (1) Subject to subsection (2), the Minister may, at any time, send to a person or serve on a person, in accordance with subsection (3), a notice of non-compliance if the Minister determines that the person has not complied in full or in part with (a) a requirement under paragraph 231.1(1)(d) or (f); (b) a requirement under paragraph 231.1(1)(e) to give an authorized person all reasonable assistance necessary to allow the authorized person to do anything the authorized person is authorized to do under paragraphs 231.1(1)(a) to (c); or (c) a notice sent or served under subsection 231.2(1) or 231.6(2). Unrelated person requirements (2) The Minister must not send or serve on a person (referred to in this subsection as the “third party”) a notice described under subsection (1) in respect of a requirement or notice (in this subsection referred to as the “unrelated person requirement”) if (a) the unrelated person requirement (i) requires the third party to provide information or any document relating to one or more other persons that are not related to the third party, or (ii) is a requirement described in subsection 231.2(2); and (b) an order has not been made under subsection 231.7(1) in respect of the unrelated person requirement. Contents of notice of non-compliance (3) A notice of non-compliance under subsection (1) shall set out, in respect of each taxation year of the taxpayer under review, the manner in which the person that has been sent or served with the notice of non-compliance has failed to comply with a requirement or notice described in any of paragraphs (1)(a) to (c). Notice (4) A notice of non-compliance referred to in subsection (1) may be (a) served personally; (b) sent by registered or certified mail; or (c) sent electronically to a bank or credit union that has provided written consent to receive notices of non-compliance under subsection (1) electronically. Request for review (5) A person that is sent or served with a notice of non-compliance under subsection (1) may, within 90 days after the day on which the notice of non-compliance is sent or served, request in writing to the Minister that the notice of non-compliance be reviewed and make a representation or submission to the Minister in that regard. Minister’s review (6) Within 180 days from the date of receipt by the Minister of a request by a person under subsection (5), the Minister must (a) confirm, vary or vacate the notice of non-compliance sent or served under subsection (1); and (b) notify the person in writing of the Minister’s decision. When required to set aside (7) A notice of non-compliance shall be vacated under subsection (6) if the Minister determines that it was unreasonable to issue the notice of non-compliance, or that the person had, prior to the issuance of the notice of non-compliance, done everything reasonably necessary to comply with each requirement or notice in respect of which the notice of non-compliance was issued. Notice deemed vacated (8) If a person has made a request under subsection (5), the notice of non-compliance sent or served under subsection (1) is deemed to be vacated under subsection (6) if the Minister has not notified the person in writing of the Minister’s decision to confirm, vary or vacate that notice of non-compliance within 180 days after the day on which the Minister received the request. Application for review of decision (9) A person may, within 90 days after the day on which the person is notified of the Minister’s decision under subsection (6), apply to a judge for a review of that decision. Powers on review (10) On hearing an application under subsection (9) in respect of a decision by the Minister, a judge may (a) confirm the decision; or (b) vary or vacate the notice of non-compliance if the judge determines that the Minister’s decision was not reasonable. When notice vacated (11) Except for the purpose of paragraph 231.8(1)(f), if a notice of non-compliance is vacated under subsection (6), (8) or (10), it is deemed to have never been sent or served. When notice outstanding (12) For the purposes of subsection (13) and paragraph 231.8(1)(e), a notice of non-compliance is outstanding beginning on the day on which it is sent to, or served on, a person until the day on which the person has, to the satisfaction of the Minister, complied, or demonstrated that they have done everything reasonably necessary to comply, with each requirement or notice in respect of which the notice of non-compliance was issued. Penalty (13) A person sent or served a notice of non-compliance under subsection (1) is liable to a penalty of $50 for each day the notice of non-compliance is outstanding, to a maximum of $25,000. Reasonable belief — privileged (14) Subsection (13) does not apply to a notice of non-compliance sent or served in respect of a person’s non-compliance with a requirement to provide information or documents or to answer questions, if one of the reasons for the person not complying with the requirement was the person’s reasonable belief that the information, documents or answers were protected from disclosure by solicitor-client privilege. Assessment (15) The Minister may at any time assess any amount payable under subsection (13) by any person and, if the Minister makes such an assessment, the provisions of Divisions I and J of Part I apply, with such modifications as the circumstances require, in respect of the assessment as though it had been made under section 152. 84 (1) Clauses 233.2(4)(c)(ii)(E) and (F) of the Act are replaced by the following: (F) a trust in which all persons beneficially interested are persons described in clauses (A) to ( D ), or (2) Subsection (1) comes into force on January 1, 2027. 85 (1) Paragraph (a) of the definition specified Canadian entity in subsection 233.3(1) of the Act is amended by adding “or” at the end of subparagraph (vi) and by replacing subparagraphs (vii) and (viii) with the following: (viii) a trust in which all persons beneficially interested are persons described in subparagraphs (i) to ( vi ); and (2) Subsection (1) comes into force on January 1, 2027. 86 (1) Subparagraph 241(4)(d)(vii.1) of the Act is replaced by the following: (vii.1) to an official solely for the purpose of the administration or enforcement of the Canada Education Savings Act or a designated provincial program as defined in subsection 146.1(1) or for the purposes of the evaluation or formulation of policy for the Canada Education Savings Act , (2) Subparagraph 241(4)(d)(vii.5) of the Act is replaced by the following: (vii.5) to an official solely for the purposes of the administration or enforcement of the Canada Disability Savings Act or a designated provincial program as defined in subsection 146.4(1) or for the purposes of the evaluation or formulation of policy for the Canada Disability Savings Act , (3) Subparagraph 241(4)(l)(ii) of the English version of the Act is replaced by the following: (ii) a by-law of a municipality in Canada or a law of an Aboriginal government; (4) The portion of paragraph 241(4)(u) of the Act before subparagraph (i) is replaced by the following: (u) provide to an official of the Department of Industry, solely for the purpose of verifying and validating the data required to be sent under section 21.21 of the Canada Business Corporations Act in respect of a corporation, other than a corporation any of the securities of which are listed on a designated stock exchange (in this paragraph referred to as the “particular corporation”), the following information: (5) The definition aboriginal government in subsection 241(10) of the English version of the Act is replaced by the following: Aboriginal government  has the same meaning as in subsection 2(1) of the Federal-Provincial Fiscal Arrangements Act ; ( gouvernement autochtone ) (6) Paragraph (c) of the definition government entity in subsection 241(10) of the English version of the Act is replaced by the following: (c) an Aboriginal government, 87 Section 244 of the Act is amended by adding the following after subsection (14.2): Electronic notice — qualified donees (14.3) Despite subsection (14.2), a notice issued under any of subsections 149.1(6.3), (22) or (23), subsection 168(1) or subsections 188.2(1), (2) or (2.1) that is made available in electronic format such that it can be read or perceived by an individual or a computer system or other similar device, and that refers to the business number, trust account number or registration number of a person, is presumed to be sent to the person and received by the person on the date that it is posted by the Minister in the secure electronic account in respect of a business number, trust account number or registration number of the person, if the person has authorized that notices may be made available in that manner and has not at least 30 days before that date revoked that authorization in a manner specified by the Minister. 88 (1) The definition registered investment in subsection 248(1) of the Act is repealed. (2) The definition prescribed in subsection 248(1) of the Act is amended by striking out “and” at the end of paragraph (a.1) and by adding the following after that paragraph: (a.2) in the case of the manner of applying for or amending the registration of a plan or arrangement described in Division G of Part I, authorized by the Minister, and (3) Subparagraph (a)(i) of the definition réinstallation admissible in subsection 248(1) of the French version of the Act is replaced by the following: (i) soit d’exploiter une entreprise ou d’occuper un emploi à un endroit (appelé « nouveau lieu de travail » à l’article 62 et dans la présente définition) qui , sauf si le contribuable est absent du Canada mais y réside, est situé au Canada, (4) Subsection 248(1) of the Act is amended by adding the following in alphabetical order: registered foreign charity  has the same meaning as in subsection 149.1(1); ( organisme de bienfaisance étranger enregistré ) (5) Subsection 248(36) of the Act is replaced by the following: Non-arm’s length transaction (36) If a taxpayer acquired a property, otherwise than by reason of the death of an individual, that is the subject of a gift to which subsection (35) applies because of subparagraph (35)(b)(i) or (ii) and the property was, at any time within the 3-year or 10-year period, respectively, that ends when the gift was made, acquired by a person or partnership with whom the taxpayer does not deal at arm’s length, for the purpose of applying subsection (35) to the taxpayer, the cost or in the case of capital property, the adjusted cost base, of the property – or, in the case of a life insurance policy in respect of which the taxpayer is a policyholder, the adjusted cost basis (as defined in subsection 148(9) ) – to the taxpayer immediately before the gift is made is deemed to be equal to the lowest amount that is the cost or in the case of capital property, the adjusted cost base – or, in the case of a life insurance policy in respect of which the taxpayer is a policyholder, the adjusted cost basis (as defined in subsection 148(9) ) – to the taxpayer or any of those persons or partnerships immediately before the property was disposed of by that person or partnership. (6) Subsection (1) comes into force on January 1, 2027. 89 (1) Paragraph 251.2(7)(d) of the Act is repealed. (2) Subsection (1) comes into force on January 1, 2027. 90 (1) The definition designated provisions in subsection 259(5) of the Act is replaced by the following: designated provisions  means sections 146, 146.1 to 146.4 and 146.6 and Parts X, XI.01 and XI.1, as they apply in respect of investments that are not qualified investments for a trust, and Part X.2; ( dispositions désignées ) (2) The definition designated provisions in subsection 259(5) of the Act, as enacted by subsection (1), is replaced by the following: designated provisions  means sections 146, 146.1 to 146.4 and 146.6 and Parts X, XI.01 and XI.1, as they apply in respect of investments that are not qualified investments for a trust; ( dispositions désignées ) (3) The definition specified taxpayer in subsection 259(5) of the Act is replaced by the following: specified taxpayer  means a taxpayer that is a registered investment or that is described in any of paragraphs 149(1)(r), (s), (u) to (u.2), (u.4) and (x). ( contribuable déterminé ) (4) The definition specified taxpayer in subsection 259(5) of the Act, as enacted by subsection (3), is replaced by the following: specified taxpayer  means a taxpayer that is described in any of paragraphs 149(1)(r), (s), (u) to (u.2), (u.4) and (x). ( contribuable déterminé ) (5) The portion of the definition qualified trust in subsection 259(5) of the Act before paragraph (a) is replaced by the following: qualified trust  at any time means a trust (other than a trust that is prescribed to be a small business investment trust) where (6) Subsections (1) and (3) are deemed to have come into force on April 1, 2023. (7) Subsections (2), (4) and (5) come into force on January 1, 2027. 91 (1) The definitions depository account , depository institution , high value account , investment entity , lower value account and new account in subsection 270(1) of the Act are replaced by the following: depository account  includes (a) a commercial, chequing, savings, time or thrift account, or an account that is evidenced by a certificate of deposit, thrift certificate, investment certificate, certificate of indebtedness or other similar instrument maintained by a depository institution; (b) an amount held by an insurance company under a guaranteed investment contract or similar agreement to pay or credit interest on the contract or agreement ; (c) an account or notional account that represents all specified electronic money products held for the benefit of a customer; and (d) an account that holds one or more central bank digital currencies for the benefit of a customer. ( compte de dépôt ) depository institution  means an entity that (a) accepts deposits in the ordinary course of a banking or similar business; or (b) holds specified electronic money products or central bank digital currencies for the benefit of customers. ( établissement de dépôt ) high value account  means a preexisting individual account with an aggregate balance or value that exceeds 1 million USD (a) if the account is an ACRS account, on December 31, 2026 or on December 31 of any subsequent year; and (b) in any other case , on June 30, 2017 or on December 31 of any subsequent year. ( compte de valeur élevée ) investment entity  means any entity (other than an entity that is an active NFE because of any of paragraphs (d) to (g) of that definition) (a) that primarily carries on as a business one or more of the following activities or operations for or on behalf of a customer: (i) trading in money market instruments (such as cheques, bills, certificates of deposit and derivatives), foreign exchange, transferable securities, commodity futures or exchange, interest rate and index instruments, (ii) individual and collective portfolio management, or (iii) otherwise investing, administering or managing financial assets, money or relevant crypto-assets on behalf of other persons, excluding through the provision of services effectuating exchange transactions for or on behalf of customers ; or (b) the gross income of which is primarily attributable to investing, reinvesting or trading in financial assets or relevant crypto-assets , if the entity is managed by another entity that is a depository institution, a custodial institution, a specified insurance company or an investment entity described in paragraph (a). ( entité d’investissement ) lower value account  means a preexisting individual account with an aggregate balance or value that does not exceed 1 million USD (a) if the account is an ACRS account, as of December 31, 2026; and (b) in any other case , as of June 30, 2017. ( compte de faible valeur ) new account  means a financial account maintained by a reporting financial institution opened (a) if the account is an ACRS account, after 2026; and (b) in any other case , after June 2017. ( nouveau compte ) (2) The definition procédures de connaissance de la clientèle et de lutte contre le blanchiment d’argent or procédures AML/KYC in subsection 270(1) of the French version of the Act is replaced by the following: procédures de connaissance de la clientèle et de lutte contre le blanchiment d’argent ou procédures AML/KYC  Obligations de tenue de documents, de vérification d’identités, de déclaration des opérations douteuses et d’inscription qu’une institution financière déclarante est tenue d’observer en vertu de la Loi sur le recyclage des produits de la criminalité et le financement des activités terroristes . ( anti-money laundering and know your customer procedures or AML/KYC procedures ) (3) The portion of the definition controlling persons in subsection 270(1) of the Act before paragraph (a) is replaced by the following: controlling persons , in respect of an entity, means the natural persons who exercise control over the entity (interpreted in a manner consistent with the 2012 FATF recommendations ) and includes (4) The portion of the definition excluded account in subsection 270(1) of the Act before paragraph (a) is replaced by the following: excluded account , at any time , means (5) Paragraph (e) of the definition excluded account in subsection 270(1) of the Act is amended by striking out “or” at the end of subparagraph (iii), by adding “or” at the end of subparagraph (iv) and by adding the following after that subparagraph: (v) a contribution of capital to a corporation or its incorporation, if the account meets the following conditions: (A) the account is used exclusively to deposit amounts that are to be used for the purpose of the incorporation of or the making of contributions of capital to a corporation, in accordance with applicable law, (B) any amounts held in the account are blocked until the reporting financial institution obtains an independent confirmation regarding the incorporation or contribution of capital, (C) the account is closed or transformed into an account in the name of the corporation after the incorporation or contribution of capital, (D) any repayments resulting from the failed incorporation or contribution of capital, net of service provider and similar fees, are made solely to the persons who contributed the amounts, and (E) the account was not established more than 12 months before that time; (6) The definition excluded account in subsection 270(1) of the Act is amended by adding the following after paragraph (e): (e.1) a depository account that only includes all specified electronic money products held for the benefit of a customer, if the rolling average 90-day end-of-day aggregate account balance or value during any period of 90 consecutive days did not exceed 10, 000 USD on any day during the calendar year that includes that time; (7) Subparagraph (a)(vi) of the definition financial asset in subsection 270(1) of the Act is replaced by the following: (vi) any interest (including a futures or forward contract or option) in a security, relevant crypto-asset , partnership interest, commodity, swap, insurance contract or annuity contract; and (8) Paragraph (b) of the definition non-reporting financial institution in subsection 270(1) of the Act is replaced by the following: (b) a governmental entity or international organization, other than with respect to (i) a payment that is derived from an obligation held in connection with a commercial financial activity of a type engaged in by a specified insurance company, custodial institution or depository institution, or (ii) the activity of maintaining central bank digital currencies for account holders which are not financial institutions, governmental entities, international organizations or central banks; (9) Paragraph (a) of the definition preexisting account in subsection 270(1) of the Act is replaced by the following: (a) a financial account maintained by a reporting financial institution on June 30, 2017 or, if the account is an ACRS account, on December 31, 2026 ; and (10) Paragraphs (a) and (b) of the definition reportable person in subsection 270(1) of the Act are replaced by the following: (a) an entity the stock of which is regularly traded on one or more established securities markets; (b) an entity that is a related entity of an entity described in paragraph (a); (11) Subsection 270(1) of the Act is amended by adding the following in alphabetical order: 2012 FATF recommendations  means the Financial Action Task Force Recommendations — International Standards on Combating Money Laundering and the Financing of Terrorism and Proliferation , adopted in February 2012 and as amended from time to time. ( recommandations de 2012 du GAFI ) ACRS account  means an account that is treated as a financial account solely because of the amendments to this Part relating to the implementation of the 2023 amendments to the Common Reporting Standard set out in the Standard for Automatic Exchange of Financial Account Information in Tax Matters modified by the Council of the Organisation for Economic Co-operation and Development in June 2023. ( compte NCDA ) central bank digital currency  means a digital fiat currency issued by a central bank. ( monnaie numérique de banque centrale ) crypto-asset  has the same meaning as in subsection 296(1). ( crypto-actif ) exchange transaction  has the same meaning as in subsection 296(1). ( transaction d’échange ) fiat currency  means (a) the official currency of a jurisdiction, issued by a jurisdiction or by a jurisdiction’s designated central bank or monetary authority, as represented by physical bank notes or coins or by money in digital forms, including bank reserves and central bank digital currencies; or (b) commercial bank money and electronic money products, including specified electronic money products. ( monnaie fiduciaire ) relevant crypto-asset  has the same meaning as in subsection 296(1). ( crypto-actif concerné ) specified electronic money product  means a product (not including a product that can only be used for facilitating the transfer of funds from a customer to another person pursuant to instructions of the customer) that can be used for making payment transactions and that is (a) a digital representation of a single fiat currency; (b) issued on receipt of funds; (c) represented by a claim on the issuer denominated in the fiat currency described in paragraph (a); (d) accepted in payment by a person other than the issuer; and (e) by virtue of regulatory requirements to which the issuer is subject, redeemable at any time and at par value for the same fiat currency upon request of the holder of the product. ( produit de monnaie électronique spécifique ) (12) Subsection 270(2) of the Act is replaced by the following: Interpretation (2) This Part relates to the implementation of the Common Reporting Standard set out in the Standard for Automatic Exchange of Financial Account Information in Tax Matters approved by the Council of the Organisation for Economic Co-operation and Development and, unless the context otherwise requires, the provisions in this Part are to be interpreted consistently with the Common Reporting Standard and its official commentary , as amended from time to time. (13) The portion of subsection 270(3) of the Act before paragraph (a) is replaced by the following: Interpretation — investment entity (3) For the purposes of the definition investment entity in subsection (1), an entity is considered to be primarily carrying on as a business one or more of the activities described in paragraph (a) of that definition, or an entity’s gross income is primarily attributable to investing, reinvesting or trading in financial assets or relevant crypto-assets for the purposes of paragraph (b) of that definition, if the entity’s gross income attributable to the relevant activities equals or exceeds 50% of the entity’s gross income during the shorter of (14) Section 270 of the Act is amended by adding the following after subsection (4): Interpretation — specified electronic money product (5) For the purposes of the definition specified electronic money product in subsection (1), a product is not a product that can only be used for facilitating the transfer of funds if, in the ordinary course of business of the transferring entity, either the funds connected with such product are held longer than 60 days after receipt of instructions to facilitate the transfer, or, if no instructions are received, the funds connected with such product are held longer than 60 days after receipt of the funds. (15) Subsections (1) to (11), (13) and (14) apply to the 2027 and subsequent calendar years. 92 (1) The portion of subsection 271(1) of the Act before paragraph (b) is replaced by the following: General reporting requirements 271 (1) Subject to subsections (3) to (6) , each reporting financial institution must report the following information to the Minister with respect to each of its reportable accounts: (a) the name, address, jurisdiction of residence, TIN and date of birth (in the case of a natural person) of each reportable person that is an account holder of the account and whether the account holder has provided a valid self-certification ; (2) Paragraph 271(1)(b) of the Act is amended by striking out “and” at the end of subparagraph (i), by adding “and” at the end of subparagraph (ii) and by adding the following after subparagraph (ii): (iii) the role by virtue of which each reportable person is a controlling person of the entity and whether a valid self-certification has been provided for each reportable person; (3) Paragraph 271(1)(c) of the Act is replaced by the following: (c) the account number (or functional equivalent in the absence of an account number) of the account, the type of account and whether the account is a preexisting account or a new account ; (4) Subsection 271(1) of the Act is amended by striking out “and” at the end of paragraph (g) and by adding the following after paragraph (h): (i) whether the account is a joint account and, if so, the number of joint account holders; and (j) in the case of any equity interest held in an investment entity that is a legal arrangement, the role by virtue of which the reportable person is an equity interest holder. (5) Paragraph 271(3)(b) of the Act is replaced by the following: (b) a reporting financial institution is required to use reasonable efforts to obtain the TIN and the date of birth with respect to a preexisting account by the end of the second calendar year following the year in which the preexisting account is identified as a reportable account and whenever it is required to update the information relating to the preexisting account pursuant to AML/KYC procedures . (6) Section 271 of the Act is amended by adding the following after subsection (4): Exception — Part XXI (5) Despite subparagraph (1)(f)(ii), and unless the reporting financial institution elects otherwise with respect to any clearly identified group of accounts, the gross proceeds from the sale or redemption of a financial asset are not required to be reported to the extent that the gross proceeds are reported by the reporting financial institution under Part XXI. Transitional rule (6) With respect to each reportable account that is maintained by a reporting financial institution as of January 1, 2027 and for reporting periods ending before 2029, each reporting financial institution must only report the role by virtue of which each reportable person is a controlling person of an entity or an equity interest holder in respect of an investment entity that is a legal arrangement if such information is available in the electronically searchable data maintained by the reporting financial institution. (7) Subsections (1) to (6) apply to the 2027 and subsequent calendar years. 93 Paragraphs 273(4)(a) and (b) of the Act are replaced by the following: (a) if the account is an ACRS account that is (i) a high value account, 2028, or (ii) a lower value account, 2029; and (b) in any other case, if the account is (i) a high value account, 2019, or (ii) a lower value account, 2020. 94 (1) Subsections 275(1) and (2) of the Act are replaced by the following: Due diligence – preexisting entity accounts 275 (1) Unless the reporting financial institution elects otherwise — either with respect to all preexisting entity accounts or, separately, with respect to any clearly identified group of those accounts — a preexisting entity account is not required to be reviewed, identified or reported as a reportable account (a) if the account is an ACRS account, until the end of the calendar year following the first year after 2025 in which the aggregate account balance or value exceeds 250, 000 USD; and (b) in any other case, if the aggregate account balance or value does not exceed 250, 000 USD on June 30, 2017, until the end of the calendar year following the first year after 2017 in which the aggregate account balance or value exceeds 250, 000 USD . Application of subsection (4) (2) The review procedures set forth in subsection (4) apply to a preexisting entity account if it has an aggregate account balance or value that exceeds 250, 000 USD on (a) if the account is an ACRS account, December 31, 2026 or the last day of a subsequent calendar year; and (b) in any other case , June 30, 2017 or the last day of a subsequent calendar year. (2) Paragraphs 275(5)(a) and (b) of the Act are replaced by the following: (a) if the account is an ACRS account and (i) has an aggregate account balance or value that exceeds 250, 000 USD on December 31, 2026, 2028, or (ii) subparagraph (i) does not apply , the end of the calendar year following the first year after 2026 in which the aggregate account balance or value exceeds 250, 000 USD on December 31; and (b) in any other case , (i) if the account has an aggregate account balance or value that exceeds 250, 000 USD on June 30, 2017, 2020, or (ii) if subparagraph (i) does not apply , the end of the calendar year following the first year in which the aggregate account balance or value exceeds 250, 000 USD on December 31. 95 (1) Subparagraph 276(b)(ii) of the Act is replaced by the following: (ii) determining the controlling persons of an account holder, a reporting financial institution may rely on information collected and maintained in accordance with AML/KYC procedures, provided that such procedures are consistent with the 2012 FATF recommendations, or, if the reporting financial institution is not legally required to apply AML/KYC procedures that are consistent with the 2012 FATF recommendations, it must apply substantially similar procedures for the purpose of determining the controlling persons, and (2) Subsection (1) applies to the 2027 and subsequent calendar years. 96 (1) Section 277 of the Act is amended by adding the following after subsection (1): Special due diligence rules — new account (1.1) In exceptional circumstances where a self-certification cannot be obtained by a reporting financial institution in respect of a new account in time to meet its due diligence and reporting obligations with respect to the reporting period during which the account was opened, the reporting financial institution must apply the due diligence procedures for preexisting accounts, until such self-certification is obtained and validated. (2) Subsection (1) applies to the 2027 and subsequent calendar years. 97 (1) Section 280 of the Act is replaced by the following: Anti-avoidance 280 If an individual or an entity enters into an arrangement or engages in a practice, the primary purpose of which can reasonably be considered to be to avoid an obligation under this Part, this Part applies as if the individual or entity had not entered into the arrangement or engaged in the practice. (2) Subsection (1) applies to the 2027 and subsequent calendar years. 98 (1) Subsection 282(2) of the Act is replaced by the following: Interpretation (2) This Part relates to the implementation of the Model Rules set out in the Model Rules for Reporting by Platform Operators with respect to Sellers in the Sharing and Gig Economy approved by the Council of the Organisation for Economic Co-operation and Development and, unless the context otherwise requires, the provisions in this Part are to be interpreted consistently with the Model Rules and their official commentary , as amended from time to time. (2) Subsection (1) is deemed to have come into force on January 1, 2024. 99 (1) The Act is amended by adding the following after Part XX: PART XXI Crypto-Asset Reporting Framework Definitions 296 (1) The following definitions apply in this Part. active entity , at any time, means an entity that meets any of the following criteria: (a) less than 50% of the entity’s gross income for the preceding calendar year is passive income and less than 50% of the assets held by the entity during the preceding calendar year are assets that produce or are held for the production of passive income; (b) it is the case that (i) all or substantially all of the activities of the entity consist of holding (in whole or in part) the outstanding stock of, or providing financing and services to, one or more subsidiaries that engage in trades or businesses other than the business of a financial institution, and (ii) the entity does not function as, and is not represented or promoted to the public as, an investment fund, including (A) a private equity fund, (B) a venture capital fund, (C) a leveraged buyout fund, and (D) an investment vehicle whose purpose is to acquire or fund companies and then hold interests in those companies as capital assets for investment purposes; (c) the entity (i) is not yet operating a business, (ii) has no prior operating history, (iii) is investing capital into assets with the intent to operate a business other than that of a financial institution, and (iv) was initially organized no more than 24 months prior to that time; (d) the entity has not been a financial institution in any of the last five years and is in the process of liquidating its assets or is reorganizing with the intent to continue or recommence operations in a business other than that of a financial institution; (e) the entity primarily engages in financing and hedging transactions with, or for, related entities that are not financial institutions, and does not provide financing or hedging services to any entity that is not a related entity, provided that the group of those related entities is primarily engaged in a business other than that of a financial institution; (f) the entity meets all of the following requirements: (i) it is established and operated in (A) its jurisdiction of residence exclusively for religious, charitable, scientific, artistic, cultural, athletic or educational purposes, or (B) its jurisdiction of residence and it is a professional organization, business league, chamber of commerce, labour organization, agricultural or horticultural organization, civic league or an organization operated exclusively for the promotion of social welfare, (ii) it is exempt from income tax in its jurisdiction of residence, (iii) it has no shareholders or members who have a proprietary or beneficial interest in its income or assets, (iv) the applicable laws of the entity’s jurisdiction of residence or the entity’s formation documents (A) do not permit any income or assets of the entity to be distributed to, or applied for the benefit of, a private person or non-charitable entity other than pursuant to the conduct of the entity’s charitable activities, or as payment of reasonable compensation for services rendered, or as payment representing the fair market value of property which the entity has purchased, and (B) require that, upon the entity’s liquidation or dissolution, all of its assets be distributed to a governmental entity or other non-profit organization, or escheat to the government of the entity’s jurisdiction of residence or any of its political subdivisions. ( entité active ) anti-money laundering and know your customer procedures or AML/KYC procedures  means the record keeping, verification of identity, reporting of suspicious transactions and registration requirements required of a reporting crypto-asset service provider under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act . ( procédures de connaissance de la clientèle et de lutte contre le blanchiment d’argent ou procédures AML/KYC ) branch  means a unit, business or office of a reporting crypto-asset service provider that is treated as a branch under the regulatory regime of a jurisdiction or that is otherwise regulated under the laws of a jurisdiction as separate from other offices, units or branches of the reporting crypto-asset service provider. ( succursale ) controlling persons  has the same meaning as in subsection 270(1). ( personnes détenant le contrôle ) crypto-asset  means a digital representation of value that relies on a cryptographically secured distributed ledger or a similar technology to validate and secure transactions. ( crypto-actif ) crypto-asset user  means (a) an individual or entity that is a customer of a reporting crypto-asset service provider for the purpose of carrying out relevant transactions, other than an individual or entity that (i) is not a financial institution or a reporting crypto-asset service provider, and (ii) is acting as a customer of a reporting crypto-asset service provider for the purpose of carrying out relevant transactions for the benefit of, or on behalf of, another individual or entity as agent, custodian, nominee, signatory, investment advisor or intermediary; (b) the individual or entity referred to in subparagraph (a)(ii) for whose benefit, or on whose behalf, relevant transactions are carried out; or (c) with respect to a reportable retail payment transaction, the customer that is the counterparty to the merchant for the transaction, if (i) a reporting crypto-asset service provider provides a service effectuating reportable retail payment transactions for or on behalf of the merchant, and (ii) the reporting crypto-asset service provider is required to verify the identity of the customer under the Proceeds of Crime (Money Laundering) and Terrorist Financing Act . ( utilisateur de crypto-actifs ) custodial institution  has the same meaning as in subsection 270(1). ( établissement de garde de valeurs ) depository institution  has the same meaning as in subsection 270(1). ( établissement de dépôt ) entity  has the same meaning as in subsection 270(1). ( entité ) entity crypto-asset user  means a crypto-asset user that is an entity. ( entité utilisatrice de crypto-actifs ) exchange transaction  means an exchange between relevant crypto-assets and fiat currencies or an exchange between one or more forms of relevant crypto-assets. ( transaction d’échange ) excluded person  means (a) an entity, the stock of which is regularly traded on one or more established securities markets (as defined in subsection 270(1)); (b) an entity that is a related entity of an entity described in paragraph (a); (c) a governmental entity; (d) an international organization (as defined in subsection 270(1)); (e) a central bank (as defined in subsection 270(1)); or (f) a financial institution, other than an investment entity described in paragraph (b) of the definition investment entity . ( personne exclue ) fiat currency  has the same meaning as in subsection 270(1). ( monnaie fiduciaire ) financial asset  has the same meaning as in subsection 270(1). ( actif financier ) financial institution  means a custodial institution, depository institution, investment entity or specified insurance company. ( institution financière ) governmental entity  has the same meaning as in subsection 270(1). ( entité gouvernementale ) individual crypto-asset user  means a crypto-asset user that is an individual (other than a trust). ( utilisateur individuel de crypto-actifs ) investment entity  means an entity, other than an entity that is an active entity because of any of paragraphs (b) to (e) of that definition, (a) that primarily carries on as a business one or more of the following activities or operations for or on behalf of a customer: (i) trading in money market instruments (such as cheques, bills, certificates of deposit and derivatives), foreign exchange, transferable securities, commodity futures or exchange, interest rate and index instruments, (ii) individual and collective portfolio management, or (iii) otherwise investing, administering or managing financial assets, money, or relevant crypto-assets on behalf of other persons, other than through the provision of services effectuating exchange transactions for or on behalf of customers; or (b) the gross income of which is primarily attributable to investing, reinvesting or trading in financial assets or relevant crypto-assets, if the entity is managed by another entity that is a depository institution, custodial institution, specified insurance company or entity described in paragraph (a). ( entité d’investissement ) partner jurisdiction  means each jurisdiction identified as a partner jurisdiction by the Minister on the Internet webpage of the Canada Revenue Agency or by any other means that the Minister considers appropriate. ( juridiction partenaire ) preexisting crypto-asset user  means a crypto-asset user that has established a relationship with the reporting crypto-asset service provider as of December 31, 2026. ( utilisateur de crypto-actifs préexistant ) related entity  in respect of an entity, means an entity if either entity controls the other entity or the two entities are controlled by the same entity or individual, and, for this purpose, control includes direct or indirect ownership of (a) in the case of a corporation, shares of the capital stock of a corporation that (i) give their holders more than 50% of the votes that could be cast at the annual meeting of the shareholders of the corporation, and (ii) have a fair market value of more than 50% of the fair market value of all the issued and outstanding shares of the capital stock of the corporation; (b) in the case of a partnership, an interest as a member of the partnership that entitles the member to more than 50% of (i) the income or loss of the partnership, or (ii) the assets (net of liabilities) of the partnership if it were to cease to exist; and (c) in the case of a trust, an interest as a beneficiary under the trust with a fair market value that is greater than 50% of the fair market value of all interests as a beneficiary under the trust. ( entité liée ) relevant crypto-asset  means any crypto-asset that is not a central bank digital currency , a specified electronic money product (as those terms are defined in subsection 270(1)) or any crypto-asset for which the reporting crypto-asset service provider has adequately determined that it cannot be used for payment or investment purposes. ( crypto-actif concerné ) relevant transaction  means an exchange transaction or a transfer of a relevant crypto-asset. ( transaction concernée ) reportable jurisdiction  means any jurisdiction, including Canada. ( juridiction soumise à déclaration ) reportable person  means a natural person (as defined in subsection 270(1)) or an entity, other than an excluded person, that is resident in a reportable jurisdiction under the tax laws of that jurisdiction, or an estate of an individual who was a resident of a reportable jurisdiction under the tax laws of that jurisdiction immediately before death, and, for this purpose, an entity that has no residence for tax purposes is deemed to be resident in the jurisdiction in which its place of effective management is situated. ( personne devant faire l’objet d’une déclaration ) reportable retail payment transaction  means a transfer of a relevant crypto-asset in consideration for goods or services for a value exceeding 50, 000 USD. ( opération de paiement au détail déclarable ) reportable user  means a crypto-asset user that is a reportable person. ( utilisateur soumis à déclaration ) reporting crypto-asset service provider  means any individual or entity that, as a business, provides a service effectuating exchange transactions for or on behalf of customers, including by acting as a counterparty or as an intermediary to the exchange transactions, or by making available a trading platform. ( prestataire de services sur crypto-actifs déclarant ) specified insurance company  has the same meaning as in subsection 270(1). ( compagnie d’assurance particulière ) TIN  has the same meaning as in subsection 270(1). ( NIF ) transfer  means a transaction that moves a relevant crypto-asset from or to the crypto-asset address or account of one crypto-asset user, other than one maintained by the reporting crypto-asset service provider on behalf of the same crypto-asset user, where, based on the knowledge available to the reporting crypto-asset service provider at the time of transaction, the reporting crypto-asset service provider cannot determine that the transaction is an exchange transaction. ( transfert ) USD  means dollars of the United States of America. ( USD ) Interpretation (2) This Part relates to the implementation of the Crypto-Asset Reporting Framework set out in the International Standards for Automatic Exchange of Information in Tax Matters approved by the Council of the Organisation for Economic Co-operation and Development and, unless the context otherwise requires, the provisions in this Part are to be interpreted consistently with the Crypto-Asset Reporting Framework and its official commentary, as amended from time to time. Interpretation — investment entity (3) For the purposes of the definition investment entity in subsection (1), an entity is considered to be primarily carrying on as a business one or more of the activities described in paragraph (a) of that definition, or an entity’s gross income is primarily attributable to investing, reinvesting or trading in financial assets or relevant crypto-assets for the purposes of paragraph (b) of that definition, if the entity’s gross income attributable to the relevant activities equals or exceeds 50% of the entity’s gross income during the shorter of (a) the three-year period that ends at the end of the entity’s last taxation year; and (b) the period during which the entity has been in existence. Interpretation — branch (4) For the purposes of the definition branch in subsection (1), all units, businesses and offices of a reporting crypto-asset service provider in a single jurisdiction must be treated as a single branch. Application of sections 298 and 299 297 (1) Subject to subsections (3) to (7), sections 298 and 299 apply to a reporting crypto-asset service provider for a calendar year if it is (a) an entity or individual resident in Canada; (b) an entity that (i) is organized under the laws of Canada or a province, and (ii) has an obligation to file tax returns or tax information returns in Canada; (c) a partnership managed from Canada; or (d) an entity or individual that carries on a business in Canada. Application — branch (2) Sections 298 and 299 apply to a reporting crypto-asset service provider described in paragraph (1)(d) for a calendar year with respect to relevant transactions effectuated through a branch in Canada if those sections would otherwise not apply to the reporting crypto-asset service provider because of any of subsections (3) to (5) and (7). Exception — jurisdiction of residence (3) A reporting crypto-asset service provider is not required to complete the reporting and due diligence requirements in sections 298 and 299 because of paragraphs (1)(b) to (d) if equivalent requirements are completed by the reporting crypto-asset service provider in a partner jurisdiction by virtue of it being resident in the partner jurisdiction. Exception — jurisdiction of incorporation or organization (4) A reporting crypto-asset service provider that is an entity is not required to complete the reporting and due diligence requirements in sections 298 and 299 because of any of paragraphs (1)(c) to (d) if equivalent requirements are completed by the reporting crypto-asset service provider in a partner jurisdiction by virtue of it being an entity that (a) is incorporated or organized under the laws of the partner jurisdiction; and (b) either has legal personality in the partner jurisdiction or has an obligation to file tax returns or tax information returns to the tax authorities in the partner jurisdiction with respect to the income of the entity. Exception — jurisdiction of management (5) A reporting crypto-asset service provider that is an entity is not required to complete the reporting and due diligence requirements in sections 298 and 299 because of paragraph (1)(d), if equivalent requirements are completed by the reporting crypto-asset service provider in a partner jurisdiction by virtue of it being managed from the partner jurisdiction. Exception — branch jurisdiction (6) A reporting crypto-asset service provider is not required to complete the reporting and due diligence requirements in sections 298 and 299 with respect to relevant transactions it effectuates through a branch in a partner jurisdiction, if equivalent requirements are completed by the branch in the partner jurisdiction. Exception — substantially similar nexus (7) A reporting crypto-asset service provider is not required to complete the reporting and due diligence requirements in sections 298 and 299 because of subsection (1), if it has notified the Minister, in the manner specified by the Minister, that the reporting crypto-asset service provider completed equivalent requirements under the rules of a partner jurisdiction because of a nexus that is substantially similar to one of those described in paragraphs (1)(a) to (d) to which the reporting crypto-asset service provider is subject to in Canada. Reporting requirements 298 (1) Subject to subsections (2) and (3) and section 299, if this section applies in respect of a reporting crypto-asset service provider for a calendar year, the reporting crypto-asset service provider must report the following information with respect to each of its crypto-asset users that are reportable users or that have controlling persons that are reportable persons at any time during the year: (a) the name, address, jurisdiction of residence, TIN and date of birth of each reportable user; (b) in the case of any entity that has one or more controlling persons that is a reportable person (i) the name, address, jurisdiction of residence and TIN of the entity, (ii) the name, address, jurisdiction of residence, TIN and date of birth of each reportable person, and (iii) the role by virtue of which each reportable person is a controlling person of the entity; (c) the name, address and TIN or other identifying number of the reporting crypto-asset service provider; (d) for each crypto-asset user and for each type of relevant crypto-asset with respect to which it has effectuated relevant transactions during the calendar year (i) the full name of the type of relevant crypto-asset, (ii) the aggregate gross amount paid, aggregate number of units and number of relevant transactions in respect of acquisitions against fiat currency, (iii) the aggregate gross amount received, aggregate number of units and number of relevant transactions in respect of dispositions against fiat currency, (iv) the aggregate fair market value, aggregate number of units and number of relevant transactions in respect of acquisitions against other relevant crypto-assets, (v) the aggregate fair market value, aggregate number of units and number of relevant transactions in respect of dispositions against other relevant crypto-assets, (vi) the aggregate fair market value, aggregate number of units and number of reportable retail payment transactions, (vii) the aggregate fair market value, aggregate number of units and number of relevant transactions, and subdivided by transfer type where known by the reporting crypto-asset service provider, in respect of transfers to the crypto-asset user not covered by subparagraphs (ii) and (iv), (viii) the aggregate fair market value, aggregate number of units and number of relevant transactions, and subdivided by transfer type where known by the reporting crypto-asset service provider, in respect of transfers by the crypto-asset user not covered by subparagraphs (iii), (v) and (vi), and (ix) the aggregate fair market value and aggregate number of units in respect of transfers by the crypto-asset user effectuated by the reporting crypto-asset service provider to wallet addresses not known by the reporting crypto-asset service provider to be associated with a virtual asset service provider or financial institution. Exception — TIN (2) Despite subsection (1), a TIN is not required to be reported if (a) it is not issued by the relevant reportable jurisdiction; or (b) the domestic law of the relevant reportable jurisdiction does not require the collection of the TIN. Currency — amount paid or received (3) For the purposes of subparagraphs (1)(d)(ii) and (iii), the amount paid or received must be reported in the fiat currency in which it was paid or received, except that if the amount was paid or received in multiple fiat currencies, the amount must be reported in Canadian dollars, converted at the time of each relevant transaction in a manner that is consistently applied by the reporting crypto-asset service provider. Currency — fair market value (4) For the purposes of subparagraphs (1)(d)(iv) to (ix), fair market value must be determined and reported in Canadian dollars, valued at the time of each relevant transaction in a manner that is consistently applied by the reporting crypto-asset service provider. Due diligence procedures 299 (1) A crypto-asset user is a reportable user as of the date it is identified (or should have been identified) as a reportable user under the due diligence procedures set out in this section. Due diligence procedures — individual crypto-asset users (2) A reporting crypto-asset service provider must apply the following due diligence procedures to determine whether an individual crypto-asset user is a reportable user: (a) obtain a valid self-certification that allows it to determine the individual crypto-asset user’s residence for tax purposes, and (b) confirm the reasonableness of such self-certification based on the information obtained by the reporting crypto-asset service provider, including any documentation collected under AML/KYC procedures. Due diligence procedures — entity crypto-asset users (3) A reporting crypto-asset service provider must apply the following due diligence procedures to determine whether an entity crypto-asset user is a reportable user or is an entity, other than an excluded person or an active entity, with one or more controlling persons who are reportable persons: (a) obtain a valid self-certification that allows it to determine the entity crypto-asset user’s residence for tax purposes and whether it is an active entity; (b) confirm the reasonableness of such self-certification based on the information obtained by the reporting crypto-asset service provider, including any documentation collected under AML/KYC procedures; (c) if the entity crypto-asset user certifies that it has no residence for tax purposes, rely on the place of effective management or on the address of the principal office to determine the residence of the entity crypto-asset user; and (d) if the self-certification indicates that the entity crypto-asset user is resident in a reportable jurisdiction, treat the entity crypto-asset user as a reportable user, unless it reasonably determines based on the self-certification or on information in its possession or that is publicly available, that the entity crypto-asset user is an excluded person. Due diligence procedures — controlling person (4) A reporting crypto-asset service provider must apply the following due diligence procedures with respect to an entity crypto-asset user, other than an excluded person or an active entity, to determine whether it has one or more controlling persons who are reportable persons: (a) rely on a valid self-certification from the entity crypto-asset user or such controlling person that allows the reporting crypto-asset service provider to determine the controlling person’s residence for tax purposes; and (b) confirm the reasonableness of the self-certification based on the information obtained by the reporting crypto-asset service provider, including any documentation collected under AML/KYC procedures. AML/KYC procedures — controlling person (5) For the purposes of determining a controlling person of the entity crypto-asset user, as required under subsection (4), a reporting crypto-asset service provider may rely on information collected and maintained under AML/KYC procedures, provided that such procedures are consistent with the 2012 FATF recommendations (as defined in subsection 270(1)) or, if it is not legally required to apply such procedures, substantially similar procedures. Timing of review (6) A reporting crypto-asset service provider must complete the due diligence procedures set out in this section when establishing a relationship with a crypto-asset user or, with respect to preexisting crypto-asset users, before 2028. Change of circumstances (7) If at any point there is a change of circumstances of a crypto-asset user or its controlling person that causes the reporting crypto-asset service provider to know, or have reason to know, that the original self-certification is incorrect or unreliable, the reporting crypto-asset service provider cannot rely on the original self-certification and must obtain a valid self-certification, or a reasonable explanation and documentation supporting the validity of the original self-certification. Self-certification — individual crypto-asset user (8) A self-certification provided by an individual crypto-asset user or controlling person is valid only if (a) it is signed or positively affirmed by the individual crypto-asset user or controlling person on or before the date of its receipt by the reporting crypto-asset service provider; and (b) it contains the following information with respect to the individual crypto-asset user or controlling person: (i) first and last name, (ii) address of residence, (iii) jurisdiction of residence for tax purposes, (iv) TIN with respect to each reportable jurisdiction, and (v) date of birth. Self-certification — entity crypto-asset user (9) A self-certification provided by an entity crypto-asset user is valid only if (a) it is signed or positively affirmed by the crypto-asset user on or before the date of its receipt by the reporting crypto-asset service provider; and (b) it contains the following information with respect to the entity crypto-asset user: (i) legal name, (ii) address, (iii) jurisdiction of residence for tax purposes, (iv) TIN with respect to each reportable jurisdiction, (v) if it is not an active entity or an excluded person, the information described in subsection (8) with respect to each controlling person of the entity crypto-asset user, unless such controlling person has provided a self-certification in accordance with that subsection, as well as the role by virtue of which each reportable person is a controlling person of the entity, if not already determined on the basis of AML/KYC procedures, and (vi) if applicable, information as to the criteria it meets to be an active entity or excluded person. Exception — TIN (10) Despite subsections (8) and (9), a TIN of a reportable person is not required to be collected if (a) the jurisdiction of residence of the reportable person does not issue a TIN to the reportable person; or (b) the domestic law of the relevant reportable jurisdiction does not require the collection of the TIN issued by the reportable jurisdiction. Exception — Part XIX (11) A reporting crypto-asset service provider that is also a financial institution (as defined in subsection 270(1)) may rely on the due diligence procedures completed under sections 274 and 276 for the purposes of the due diligence procedures in this section. Exception — self-certification (12) A reporting crypto-asset service provider may rely on a self-certification already collected for other tax purposes for the purposes of the due diligence procedures in this section, provided the self-certification meets the requirements of subsection (8) or (9). Delegation (13) A reporting crypto-asset service provider may rely on a third party to fulfil the due diligence obligations set out in this section, but such obligations remain the responsibility of the reporting crypto-asset service provider. Reporting 300 (1) Every reporting crypto-asset service provider to which section 298 applies must file with the Minister, before May 2 of each calendar year, an information return in prescribed form containing the information that is required to be reported in respect of the preceding calendar year under this Part. Electronic filing (2) The information return required under subsection (1) must be filed by way of electronic filing. Record keeping 301 (1) Every reporting crypto-asset service provider must keep, at the service provider’s place of business or at such other place as may be designated by the Minister, records that the service provider obtains or creates for the purpose of complying with this Part, including self-certifications and records of documentary evidence. Form of records (2) Every reporting crypto-asset service provider required by this Part to keep records that does so electronically must retain them in an electronically readable format for the retention period referred to in subsection (3). Retention of records (3) Every reporting crypto-asset service provider that is required to keep, obtain or create records under this Part must retain those records for a period of at least six years following the end of the last calendar year in respect of which the record is relevant. Anti-avoidance 302 If an individual or an entity enters into an arrangement or engages in a practice, the primary purpose of which can reasonably be considered to be to avoid an obligation under this Part, this Part applies as if the individual or entity had not entered into the arrangement or engaged in the practice. Production of TIN 303 (1) Every reportable person and every crypto-asset user that has a controlling person that is a reportable person must provide their TIN and the TIN of each of their controlling persons, if applicable, at the request of a reporting crypto-asset service provider that is required under this Part to make an information return requiring the TIN. Confidentiality of TIN (2) A person required to make an information return referred to in subsection (1) must not knowingly use, communicate or allow to be communicated, other than as required or authorized under this Act or a regulation, the TIN without the written consent of the person to whom the TIN relates. Penalty (3) Every reportable person and every crypto-asset user that has a controlling person that is a reportable person who fails to provide on request their TIN (or that of a controlling person that is a reportable person) to a reporting crypto-asset service provider that is required under this Part to make an information return requiring the TIN is liable to a penalty of $500 for each such failure, unless (a) an application for the assignment of the TIN is made to the relevant reportable jurisdiction not later than 90 days after the request was made and the TIN is provided to the reporting crypto-asset service provider that requested it within 15 days after the reportable person or entity to whom the TIN relates received it; or (b) the reportable person or the crypto-asset user that has a controlling person that is a reportable person is not eligible to obtain a TIN from the relevant reportable jurisdiction (including because the relevant reportable jurisdiction does not issue TINs). Assessment (4) The Minister may at any time assess any amount payable under subsection (3) by any person and, if the Minister sends a notice of assessment to the person, sections 150 to 163, subsections 164(1) and (1.4) to (7), sections 165 to 167 and Division J of Part I apply with such modifications as the circumstances require. (2) Subsection (1) applies to the 2027 and subsequent calendar years. R.S., c. E- 15 Excise Tax Act 100 (1) The definition section 325 avoidance transaction in subsection 285.03(1) of the Excise Tax Act is amended by striking out “or” at the end of paragraph (a), by adding “or” at the end of paragraph (b) and by adding the following after paragraph (b): (c) property is deemed under subsection 325(7) to have been transferred as part of the transaction or series of transactions. ( opération d’évitement de l’article 325 ) (2) Subsection (1) is deemed to have come into force on April 16, 2024. 101 Paragraph 298(3)(b) of the Act is replaced by the following: (b) with the consent in writing of the person, to dispose of an appeal of the person or another person ; or 102 (1) Section 325 of the Act is amended by adding the following after subsection (5): Deemed transfer — conditions (6) Subsection (7) applies in respect of a transaction or series of transactions if, as part of the transaction or series of transactions, the following conditions are satisfied: (a) a person (in this subsection referred to as the “planner”) transfers property, either directly or indirectly, by means of a trust or by any other means, to a person (in this subsection and subsection (7) referred to as the “acquirer”), or a person not dealing at arm’s length with the acquirer, pursuant to the direction of or with the concurrence of the acquirer; (b) a person (in this subsection and subsection (7) referred to as the “conveyor”) transfers property, either directly or indirectly, by means of a trust or by any other means, to the planner or any other person; and (c) it is reasonable to conclude that one of the purposes of undertaking or arranging the transaction or series of transactions is to avoid joint and several, or solidary, liability of the acquirer and the conveyor under this section for an amount payable or remittable under this Part. Deemed transfer (7) For the purposes of this section, if the conditions set out in subsection (6) are satisfied in respect of a transaction or series of transactions, the following rules apply: (a) the conveyor is deemed to have transferred the property referred to in paragraph (6)(b) to the acquirer as part of the transaction or series of transactions; and (b) the conveyor is deemed to be a transferor, and the acquirer is deemed to be a transferee, in respect of the transaction or series of transactions. Nil consideration — conditions (8) Subsection (9) applies in respect of a transaction or series of transactions if (a) the transaction or series of transactions is a section 325 avoidance transaction (as defined in subsection 285.03(1)) that is described in paragraph (a) or (c) of that definition; or (b) the transaction or series of transactions is a section 325 avoidance transaction (as defined in subsection 285.03(1)) that is described in paragraph (b) of that definition and it is reasonable to conclude that one of the purposes of undertaking or arranging the transaction or series of transactions is to avoid joint and several, or solidary, liability of the transferee and the transferor under this section for an amount payable or remittable under this Part. Nil consideration (9) For the purposes of this section, if the conditions set out in paragraph (8)(a) or (b) are satisfied in respect of a transaction or series of transactions, in determining the amount that the transferee and the transferor are jointly and severally, or solidarily, liable to pay under this section, the fair market value of the consideration given by the transferee for any property transferred as part of the transaction or series of transactions is deemed to be nil. (2) Subsection (1) is deemed to have come into force on April 16, 2024. 1997, c. 27 Income Tax Conventions Implementation Act, 1996 103 (1) The Income Tax Conventions Implementation Act, 1996 is amended by adding the following after section 7: Suspension period 7.1 (1) Despite sections 4 and 7, the Agreement is deemed to be suspended and of no force or effect throughout the period beginning on November 18, 2024 and ending on the day before the recommencement date, to be fixed by order of the Governor in Council made on the recommendation of the Minister of Finance after consultation with the Minister of Foreign Affairs, when the Agreement is no longer suspended and recommences to be of force and effect. Retroactive effect (2) An order made under subsection (1) may, if it so provides, have retroactive effect. Obligations, rights deemed inoperative (3) Throughout the period referred to in subsection (1), (a) all obligations and liabilities of His Majesty in right of Canada and all rights and privileges of anyone under the Agreement, or arising in connection with the Agreement, are deemed to be extinguished; and (b) any provision in sections 2 to 7 that has the effect of providing for, or permitting, anything that, in substance, is contrary to this section is of no force or effect. No compensation (4) No one is entitled to any compensation from His Majesty in right of Canada in connection with the coming into force of this section. (2) Subsection (1) is deemed to have come into force on November 18, 2024. 2002, c. 9, s. 5 Air Travellers Security Charge Act 104 Paragraph 42(2)(b) of the Air Travellers Security Charge Act is replaced by the following: (b) with the written consent of the person , to dispose of an appeal of the person or another person . 2002, c. 22 Excise Act, 2001 105 Paragraph 191(3)(b) of the Excise Act, 2001 is replaced by the following: (b) with the consent in writing of the person, to dispose of an appeal of the person or another person ; or 106 (1) Subsection 297(0.1) of the Act is amended by adding the following in alphabetical order: avoidance transaction  means a transaction or series of transactions in respect of which (a) the conditions in paragraph (6)(a) or (b) are met; (b) if subsection (6) applied to the transaction or series of transactions, the amount determined under subparagraph (6)(c)(ii) would exceed the amount determined under subparagraph (6)(c)(i); or (c) property is deemed under subsection (8) to have been transferred as part of the transaction or series of transactions. ( opération d’évitement ) (2) Section 297 of the Act is amended by adding the following after subsection (6): Deemed transfer — conditions (7) Subsection (8) applies in respect of a transaction or series of transactions if, as part of the transaction or series of transactions, the following conditions are satisfied: (a) a person (in this subsection referred to as the “planner”) transfers property, either directly or indirectly, by means of a trust or by any other means, to a person (in this subsection and subsection (8) referred to as the “acquirer”), or a person not dealing at arm’s length with the acquirer, pursuant to the direction of or with the concurrence of the acquirer; (b) a person (in this subsection and subsection (8) referred to as the “conveyor”) transfers property, either directly or indirectly, by means of a trust or by any other means, to the planner or any other person; and (c) it is reasonable to conclude that one of the purposes of undertaking or arranging the transaction or series of transactions is to avoid joint and several, or solidary, liability of the acquirer and the conveyor under this section for an amount payable under this Act. Deemed transfer (8) For the purposes of this section, if the conditions set out in subsection (7) are satisfied in respect of a transaction or series of transactions, the following rules apply: (a) the conveyor is deemed to have transferred the property referred to in paragraph (7)(b) to the acquirer as part of the transaction or series of transactions; and (b) the conveyor is deemed to be a transferor, and the acquirer is deemed to be a transferee, in respect of the transaction or series of transactions. Nil consideration — conditions (9) Subsection (10) applies in respect of a transaction or series of transactions if (a) the transaction or series of transactions is an avoidance transaction that is described in paragraph (a) or (c) of the definition avoidance transaction in subsection (0.1); or (b) the transaction or series of transactions is an avoidance transaction that is described in paragraph (b) of the definition avoidance transaction in subsection (0.1) and it is reasonable to conclude that one of the purposes of undertaking or arranging the transaction or series of transactions is to avoid joint and several, or solidary, liability of the transferee and the transferor under this section for an amount payable under this Act. Nil consideration (10) For the purposes of this section, if the conditions set out in paragraph (9)(a) or (b) are satisfied in respect of a transaction or series of transactions, in determining the amount that the transferee and the transferor are jointly and severally, or solidarily, liable to pay under this section, the fair market value of the consideration given by the transferee for any property transferred as part of the transaction or series of transactions is deemed to be nil. (3) Subsections (1) and (2) are deemed to have come into force on April 16, 2024. 2022, c. 10, s. 135 Select Luxury Items Tax Act 107 Paragraph 96(3)(b) of the Select Luxury Items Tax Act is replaced by the following: (b) with the written consent of the person , to dispose of an appeal of the person or another person ; or 108 (1) Subsection 150(1) of the Act is replaced by the following: Definitions 150 (1) The following definitions apply in this section. avoidance transaction  means a transaction or series of transactions in respect of which (a) the conditions in paragraph (7)(a) or (b) are met; (b) if subsection (7) applied to the transaction or series of transactions, the amount determined under subparagraph (7)(c)(ii) would exceed the amount determined under subparagraph (7)(c)(i); or (c) property is deemed under subsection (9) to have been transferred as part of the transaction or series of transactions. ( opération d’évitement ) transaction  includes an arrangement or event. ( opération ) (2) Section 150 of the Act is amended by adding the following after subsection (7): Deemed transfer — conditions (8) Subsection (9) applies in respect of a transaction or series of transactions if, as part of the transaction or series of transactions, the following conditions are satisfied: (a) a person (in this subsection referred to as the “planner”) transfers property, either directly or indirectly, by means of a trust or by any other means, to a person (in this subsection and subsection (9) referred to as the “acquirer”), or a person not dealing at arm’s length with the acquirer, pursuant to the direction of or with the concurrence of the acquirer; (b) a person (in this subsection and subsection (9) referred to as the “conveyor”) transfers property, either directly or indirectly, by means of a trust or by any other means, to the planner or any other person; and (c) it is reasonable to conclude that one of the purposes of undertaking or arranging the transaction or series of transactions is to avoid joint and several, or solidary, liability of the acquirer and the conveyor under this section for an amount payable under this Act. Deemed transfer (9) For the purposes of this section, if the conditions set out in subsection (8) are satisfied in respect of a transaction or series of transactions, the following rules apply: (a) the conveyor is deemed to have transferred the property referred to in paragraph (8)(b) to the acquirer as part of the transaction or series of transactions; and (b) the conveyor is deemed to be a transferor, and the acquirer is deemed to be a transferee, in respect of the transaction or series of transactions. Nil consideration — conditions (10) Subsection (11) applies in respect of a transaction or series of transactions if (a) the transaction or series of transactions is an avoidance transaction that is described in paragraph (a) or (c) of the definition avoidance transaction in subsection (1); or (b) the transaction or series of transactions is an avoidance transaction that is described in paragraph (b) of the definition avoidance transaction in subsection (1) and it is reasonable to conclude that one of the purposes of undertaking or arranging the transaction or series of transactions is to avoid joint and several, or solidary, liability of the transferee and the transferor under this section for an amount payable under this Act. Nil consideration (11) For the purposes of this section, if the conditions set out in paragraph (10)(a) or (b) are satisfied in respect of a transaction or series of transactions, in determining the amount that the transferee and the transferor are jointly and severally, or solidarily, liable to pay under this section, the fair market value of the consideration given by the transferee for any property transferred as part of the transaction or series of transactions is deemed to be nil. (3) Subsections (1) and (2) are deemed to have come into force on April 16, 2024. C.R.C., c. 945 Income Tax Regulations 109 Paragraph 200(2)(j) of the Income Tax Regulations is replaced by the following: (j) a payment out of a registered education savings plan, other than a refund of payments or a payment to a designated subscriber as defined in subsection 146.1(1) of the Act , 110 (1) Subsection 205(3) of the Regulations is amended by adding the following in alphabetical order: Part XIX Information Return — International Exchange of Information on Financial Accounts Part XXI Information Return — International Exchange of Information on Crypto-Assets (2) Subsection (1) applies to the 2027 and subsequent calendar years. 111 (1) Subsection 205.‍1(1) of the Regulations is amended by adding the following in alphabetical order: Part XIX Information Return — International Exchange of Information on Financial Accounts Part XX Information Return — Digital Platform Operators Part XXI Information Return — International Exchange of Information on Crypto-Assets (2) Subsection (1) applies to the 2027 and subsequent calendar years. 112 (1) Paragraph 221(1)(f) of the Regulations is replaced by the following: (e) a trust described in paragraph 4900(1)(d.21); (f) a trust described in paragraph 4900(1)(d.22); or (2) Paragraphs 221(1)(e) and (f) of the Regulations, as enacted by subsection (1), are replaced by the following: (e) a trust described in paragraph 5003(a); (f) a trust described in paragraph 5003(b); or (3) Subsection 221(2) of the Regulations is replaced by the following: (2) If in any taxation year a reporting person claims that a share of its capital stock issued by it, or an interest as a beneficiary under it, is a qualified investment under section 204 or 207.01 of the Act, the reporting person shall, in respect of the year and within 90 days after the end of the year, make an information return in prescribed form. (4) Subsection (1) applies to the 2026 taxation year. (5) Subsections (2) and (3) come into force on January 1, 2027. 113 The portion of section 600 of the Regulations before paragraph (a) is replaced by the following: 600 For the purposes of paragraph 220(3.2)(a) of the Act, the following are prescribed provisions: 114 (1) Paragraph 1100(1)(a.1) of the Regulations is replaced by the following: (a.1) where a separate class is prescribed by subsection 1101(5b.1) for a property of a taxpayer that is a building that meets the manufacturing floor space requirement at the end of the taxation year, (i) if the property is an eligible manufacturing building and the year is the first year in which the manufacturing floor space requirement is met in respect of the building, such amount as the taxpayer may claim for that year not exceeding the amount determined by the formula A × B where A is the undepreciated capital cost to the taxpayer of the property of that class as of the end of the year (before making any deduction under this subsection for the year), and B is, if the year ends (A) before 2030, 100%, (B) in 2030 or 2031, 75%, (C) in 2032 or 2033, 55%, and (D) after 2033, 0%, and (ii) in any other case , such amount as the taxpayer may claim not exceeding 6% of the undepreciated capital cost to the taxpayer of the property of that class as of the end of the year (before making any deduction under this subsection for the year); (2) Section 1100 of the Regulations is amended by adding the following after subsection (1): Manufacturing buildings — first-year deductions (1.01) If a deduction is available in respect of an eligible manufacturing building of a taxpayer under subparagraph (1)(a.1)(i) for a taxation year, then, despite any other provision in this section, the taxpayer may not deduct any other amount permitted under this Part in respect of the building for the year. (3) The portion of paragraph (a) of the description of A.1 in subsection 1100(2) of the Regulations before subparagraph (i) is replaced by the following: (a) if the property is not included in subparagraph (1)(a.1)(i) , paragraph (1)‍(v) or in any of Classes 12, 13, 14, 15, 43.‍1, 44, 46, 50, 53, 54, 55, 56 and 59 or in Class 43 in the circumstances described in paragraph (f), (4) Subsection 1100(3) of the Regulations is replaced by the following: (3) Where a taxation year is less than 12 months, the amount allowed as a deduction under this section, other than under subsection (0.1) and any of subparagraph (1)(a.1)(i) and paragraphs (1)(c), (e), (f), (g), (m), (w), (x), (y) and (ya), shall not exceed that proportion of the maximum amount otherwise allowable that the number of days in the taxation year is of 365. (5) Subsections (1) to (4) are deemed to have come into force on November 4, 2025. 115 (1) The portion of subsection 1101(1) of the French version of the Regulations before paragraph (c) is replaced by the following: 1101 (1) Lorsqu’une même catégorie de l’annexe II vise plus d’un bien d’un contribuable, et que, à la fois  : a) un des biens a été acquis aux fins de gagner ou de produire le revenu d’une entreprise, et b) un des biens a été acquis aux fins de gagner ou de produire le revenu d’une autre entreprise ou du bien , une catégorie distincte est prescrite pour les biens qui (2) Subsection 1101(5b.1) of the Regulations is replaced by the following: (5b.1) For the purposes of this Part, a separate class is prescribed for each eligible non-residential building or eligible manufacturing building (other than an eligible liquefaction building) of a taxpayer in respect of which the taxpayer has elected ( in the taxpayer’s return of income under Part I of the Act for the taxation year in which the building is acquired) that this subsection apply. (3) Subsection (2) is deemed to have come into force on November 4, 2025. 116 (1) The portion of subsection 1102(20.1) of the Regulations before paragraph (b) is replaced by the following: (20.1) For the purposes of subsections 1100(0.3), (2.02) and (2.021) and 1104 (2) , (3.1), (4) and (4.01), a particular person or partnership and another person or partnership shall be considered not to be dealing at arm’s length with each other in respect of the acquisition or ownership of a property if, in the absence of this subsection, they would be considered to be dealing at arm’s length with each other and it may reasonably be considered that the principal purpose of any transaction or event, or a series of transactions or events, is to cause (a) the property to qualify as accelerated investment incentive property, reaccelerated investment incentive property, immediate expensing property or an eligible manufacturing building ; or (2) Subsections 1102(23) and (24) of the Regulations are replaced by the following: (23) For the purposes of applying (a) subparagraph 1100(1)(a.1)(ii), paragraph 1100(1)(a.2) and subsection 1101(5b.1), the capital cost of an addition to or an alteration of a taxpayer’s building is deemed to be the capital cost to the taxpayer of a separate building if the building to which the addition or alteration was made is not included in a separate class under subsection 1101(5b.1); and (b) subparagraph 1100(1)(a.1)(i), the capital cost to a taxpayer of an addition to or an alteration of the taxpayer’s building is deemed to be the capital cost of a separate building. (24) If an addition or an alteration is deemed to be a separate building under subsection (23), the references in paragraph 1100(1)(a.2) and the definition manufacturing floor space requirement in subsection 1104(2) to “the floor space of the building” are to be read as references to “the total floor space of the separate building and the building to which the addition or alteration was made”. (3) Section 1102 of the Regulations is amended by adding the following after subsection (25): Acquisition cost of eligible manufacturing buildings (25.1) For the purposes of this Part and Schedule II, if a building of a taxpayer was under construction on November 4, 2025 and the building would be an eligible manufacturing building (as defined in subsection 1104(2)) if that definition were read without reference to its paragraph (b), the portion, if any, of the capital cost of the building that was incurred by the taxpayer before November 4, 2025 and has not been deducted under paragraph 20(1)(a) of the Act is deemed to have been incurred by the taxpayer on November 4, 2025 unless the taxpayer elects (in the taxpayer’s return of income under Part I of the Act for the taxation year in which the building was acquired) that this subsection not apply to that cost. (4) Subsections (1) to (3) are deemed to have come into force on November 4, 2025. 117 (1) Subsection 1104(2) of the Regulations is amended by adding the following in alphabetical order: eligible manufacturing building  means a building (other than a building used as part of an eligible liquefaction facility) of a taxpayer that (a) is located in Canada, (b) is acquired by the taxpayer after November 3, 2025, (c) is included in Class 1 of Schedule II, (d) meets either of the following conditions: (i) the property is not a property in respect of which an amount has been deducted under paragraph 20(1)(a) or subsection 20(16) of the Act by any person or partnership for a taxation year ending before the time the property was acquired by the taxpayer, or (ii) the property was not (A) acquired in circumstances where (I) the taxpayer was deemed to have been allowed or deducted an amount under paragraph 20(1)(a) of the Act in respect of the property in computing income for previous taxation years, or (II) the undepreciated capital cost of depreciable property of a prescribed class of the taxpayer was reduced by an amount determined by reference to the amount by which the capital cost of the property to the taxpayer exceeds its cost amount, or (B) previously owned or acquired by the taxpayer or by a person or partnership with which the taxpayer did not deal at arm’s length at any time when the property was owned or acquired by the person or partnership, and (e) is reasonably expected to meet the manufacturing floor space requirement once it is used; ( bâtiment de fabrication admissible ) manufacturing floor space requirement , in respect of a building of a taxpayer, means the requirement that at least 90% of the floor space of the building is used by the taxpayer, or a lessee of the taxpayer, for the manufacturing or processing in Canada of goods for sale or lease; ( exigence relative à la superficie utilisée pour la fabrication ) (2) The portion of subsection 1104(9) of the Regulations before paragraph (a) is replaced by the following: (9) For the purposes of paragraph 1100(1)(a.1), subsections 1100(26) and 1104(2) and Class 29 in Schedule II, manufacturing or processing does not include (3) Subsections (1) and (2) are deemed to have come into force on November 4, 2025. 118 The portion of section 2301 of the Regulations before paragraph (a) is replaced by the following: 2301 Any designation by a taxpayer under the definition principal residence in section 54 of the Act shall be made in the return of income required by section 150 of the Act to be filed by him for any taxation year of the taxpayer in which 119 (1) Paragraph 3501(1)(d) of the Regulations is repealed. (2) The portion of paragraph 3501(1)(e.1) of the French version of the Regulations before subparagraph (i) is replaced by the following: e.1) lorsque le don est un don de biens autres que des espèces, à la fois  : (3) Paragraph 3501(1)(e.1) of the Regulations is amended by adding “and” at the end of subparagraph (i), by striking out “and” at the end of subparagraph (ii) and by repealing subparagraph (iii). (4) Paragraph 3501(1)(g) of the Regulations is replaced by the following: (g) the name and address of the donor including, in the case of an individual, the individual’s first name; (5) Paragraphs 3501(1)(i) and (j) of the Regulations are replaced by the following: (i) the signature, as provided in subsection (2), (3) or (3.2) , of a responsible individual who has been authorized by the organization to acknowledge gifts; and (j) the name and Internet webpage of the Canada Revenue Agency. (6) Paragraph 3501(1.1)(c) of the Regulations is repealed. (7) The portion of paragraph 3501(1.1)(e) of the French version of the Regulations before subparagraph (i) is replaced by the following: e) lorsque le don est un don de biens autres que des espèces, à la fois  : (8) Paragraph 3501(1.1)(e) of the Regulations is amended by adding “and” at the end of subparagraph (i), by striking out “and” at the end of subparagraph (ii) and by repealing subparagraph (iii). (9) Paragraph 3501(1.1)(g) of the Regulations is replaced by the following: (g) the name and address of the donor including, in the case of an individual, the individual’s first name; (10) Paragraphs 3501(1.1)(i) and (j) of the Regulations are replaced by the following: (i) the signature, as provided in subsection (2), (3.1) or (3.2) , of a responsible individual who has been authorized by the other recipient of the gift to acknowledge donations; and (j) the name and Internet webpage of the Canada Revenue Agency. (11) Subsection 3501(2) of the Regulations is replaced by the following: (2) Except as provided in subsection (3), (3.1) or (3.2) , every official receipt shall be signed personally by an individual referred to in paragraph (1)(i) or (1.1)(i). (12) Section 3501 of the Regulations is amended by adding the following after subsection (3.1): (3.2) Where an official receipt is electronically issued, it may contain a digital signature if (a) it has a unique serial number; and (b) it is issued and sent in a secure and non-editable format. (13) Subsection 3501(5) of the Regulations is replaced by the following: (5) A spoiled official receipt must be marked “cancelled” or “void ” and such receipt must be retained by the registered organization or the other recipient of a gift as part of its records. 120 (1) Subsection 4900(1) of the Regulations is amended by adding the following after paragraph (d.2): (d.21) a unit of a trust that is subject to, and substantially complies with, the requirements of National Instrument 81- 102 Investment Funds , as amended from time to time, of the Canadian Securities Administrators; (d.22) a unit of a trust if (i) the trust has a class of units outstanding that (A) has been lawfully distributed in a province to the public and a prospectus, registration statement or similar document was not, under the laws of the province, required to be filed in respect of the distribution, or (B) is qualified for distribution to the public, (ii) the trust satisfies the conditions in subparagraphs (b)(i) to (vi) of the definition investment fund in subsection 251.2(1) of the Act, and (iii) the investments of the trust are managed by a person that is registered as an investment fund manager as described in National Instrument 31- 103 Registration Requirements, Exemptions and Ongoing Registrant Obligations , as amended from time to time, of the Canadian Securities Administrators; (2) Subsection (1) is deemed to have come into force on November 4, 2025. 121 (1) Part XLIX of the Regulations is replaced by the following: PART L Qualified and Prohibited Investments for Registered Plans Interpretation 5000 The following definitions apply in this Part. connected person , under a registered plan (as defined in subsection 207.01(1) of the Act) governing a trust, means a person that is a controlling individual (as defined in subsection 207.01(1) of the Act) of the plan or a beneficiary of the trust and any other person or partnership that does not deal at arm’s length with that person. ( personne rattachée ) specified cooperative corporation  means (a) a cooperative corporation as defined in subsection 136(2) of the Act; or (b) a corporation that would be a cooperative corporation as defined in subsection 136(2) of the Act if the purpose described in that subsection were the purpose of providing employment to the corporation’s members or customers. ( coopérative déterminée ) specified small business corporation , at any time, means a corporation (other than a cooperative corporation as defined in subsection 136(2) of the Act) that would, at that time or at the end of the last taxation year of the corporation that ended before that time, be a small business corporation if the reference to “Canadian-controlled private corporation” in the definition small business corporation in subsection 248(1) of the Act were read as a reference to “Canadian corporation (other than a corporation controlled at that time, directly or indirectly in any manner whatever, by one or more non-resident persons)”. ( société déterminée exploitant une petite entreprise ) Debt Instruments 5001 For the purposes of paragraph (l) of the definition qualified investment in subsection 207.01(1) of the Act, each of the following investments is prescribed as a qualified investment for a trust governed by a registered plan at a particular time if at that time it is: (a) an indebtedness of a Canadian corporation represented by a bankers’ acceptance; (b) a bond, debenture, note or similar obligation of a Canadian corporation if (i) payment of the principal amount of the obligation and the interest on the principal amount is guaranteed by a corporation or a mutual fund trust whose shares or units, as the case may be, are listed on a designated stock exchange in Canada, (ii) the corporation is controlled directly or indirectly by one or more corporations or mutual fund trusts described in subparagraph (i), or (iii) payment of the principal amount of which is guaranteed by His Majesty in right of a province under the Community Development Bonds Act , C.C.S.M., c. C160; (c) a bond, debenture, note or similar obligation issued by, or a deposit with, a credit union; (d) a bond, debenture, note or similar obligation issued by a cooperative corporation (as defined in 136(2) of the Act) if (i) throughout the taxation year of the corporation immediately preceding the year in which the obligation was acquired by the trust, the corporation had at least 100 shareholders or, if all its shareholders were corporations, 50 shareholders, and (ii) no more than 5% of the fair market value of all obligations of the corporation are held by one or more trusts that share the same controlling individual (as defined in subsection 207.01(1) of the Act) or beneficiary; (e) a bond, debenture, note or similar obligation of a Canadian corporation if, at the time the obligation is acquired by the trust, the corporation that issued the obligation is a corporation that (i) is, or is controlled by, a corporation that has issued and outstanding share capital carried in its books at not less than $25 million, and (ii) has issued and outstanding bonds, debentures, notes or similar obligations having in the aggregate a principal amount of at least $10 million (A) that are held by at least 300 different persons, (B) for which a prospectus, registration statement or similar document was filed with and, where required by law, accepted for filing by a public authority in Canada in accordance with the laws of Canada or a province, and (C) for which there was a lawful distribution to the public in accordance with the document described in clause (B); (f) a debt issued by a Canadian corporation (other than a corporation with share capital) if the taxable income of the corporation is exempt from tax under Part I of the Act because of paragraph 149(1)(l) of the Act and (i) before the particular time and after 1995, the corporation (A) acquired, for a total consideration of not less than $25 million, property from His Majesty in right of Canada or a province, and (B) put that property to a use that is the same as or similar to the use to which the property was put before the acquisition described in clause (A), or (ii) at the time of the acquisition of the debt by the trust, it was reasonable to expect that subparagraph (i) would apply in respect of the debt no later than one year after the time of the acquisition; (g) a debt issued by a Canadian corporation (other than a corporation with share capital) if the taxable income of the corporation is exempt from tax under Part I of the Act because of paragraph 149(1)(l) of the Act and (i) the debt is issued by the corporation as part of an issue of debt by the corporation for an amount of at least $25 million, or (ii) at the time of the acquisition of the debt by the trust, the corporation had issued debt as part of a single issue for an amount of at least $25 million; (h) a debt obligation of a debtor, or an interest (or for civil law a right) in that debt obligation, if it is (i) fully secured by a mortgage, charge, hypothec or similar instrument in respect of real or immovable property situated in Canada, or would be fully secured were it not for a decline in the fair market value of the property after the debt obligation was issued, or (ii) secured by a mortgage, charge, hypothec or similar instrument in respect of real or immovable property situated in Canada and is (A) administered by an approved lender under the National Housing Act or a qualified mortgage lender under the Protection of Residential Mortgage or Hypothecary Insurance Act , and (B) insured under the National Housing Act or the Protection of Residential Mortgage or Hypothecary Insurance Act ; or (i) a certificate evidencing an undivided interest, or for civil law an undivided right, in one or more properties if (i) all or substantially all of the fair market value of the certificate is attributable to property that is, or is incidental to, a debt obligation secured by (A) a mortgage, charge, hypothec or similar instrument in respect of real or immovable property situated in Canada, or (B) property described in paragraph (a) or subparagraph (c)(i) of the definition qualified investment in subsection 207.01(1) of the Act that was substituted for the security referred to in clause (A) under the terms of the debt obligation, (ii) the certificate, at the time of its acquisition by the trust, has an investment-grade rating with a credit rating agency referred to in section 5005, and (iii) the certificate is issued as part of an issue of certificates by the issuer for a total amount of at least $25 million. Equity Instruments 5002 For the purposes of paragraph (l) of the definition qualified investment in subsection 207.01(1) of the Act, each of the following investments is prescribed as a qualified investment for a trust governed by a registered plan at a particular time if at that time it is: (a) a share of the capital stock of a mortgage investment corporation; (b) a share of, or similar interest in, a credit union; (c) an American Depositary Receipt where the property represented by the receipt is listed on a designated stock exchange; (d) a share of the capital stock of a specified small business corporation; (e) a share of the capital stock of a venture capital corporation described in any of sections 6700 to 6700.2; or (f) a share of the capital or capital stock of a specified cooperative corporation. Trusts 5003 For the purposes of paragraph (l) of the definition qualified investment in subsection 207.01(1) of the Act, each of the following investments is prescribed as a qualified investment for a trust governed by a registered plan at a particular time if at that time it is a unit of a trust that: (a) is subject to, and substantially complies with, the requirements of National Instrument 81- 102 Investment Funds , as amended from time to time, of the Canadian Securities Administrators; (b) meets the following conditions: (i) the trust has a class of units outstanding that (A) has been lawfully distributed in a province to the public and a prospectus, registration statement or similar document was not, under the laws of the province, required to be filed in respect of the distribution, or (B) is qualified for distribution to the public, (ii) the trust satisfies the conditions in subparagraphs (b)(i) to (vi) of the definition investment fund in subsection 251.2(1) of the Act, and (iii) the investments of the trust are managed by a person that is registered as an investment fund manager as described in National Instrument 31- 103 Registration Requirements, Exemptions and Ongoing Registrant Obligations , as amended from time to time, of the Canadian Securities Administrators; (c) is a mutual fund trust (or would be a mutual fund trust if it had been created after 1999); or (d) is a small business investment trust (within the meaning assigned by subsection 5103(1)) that (i) was acquired by the trust before January 1, 2027, (ii) was a qualified investment for the trust at the time it was acquired, and (iii) would, at the particular time, be a qualified investment for the trust under these Regulations as they read on December 31, 2026. Other Prescribed Investments 5004 For the purposes of paragraph (l) of the definition qualified investment in subsection 207.01(1) of the Act, each of the following investments is prescribed as a qualified investment for a trust governed by a registered plan at a particular time if at that time it is: (a) an option, a warrant or a similar right (each of which is, in this paragraph, referred to as the “security”) issued by a person or partnership (in this paragraph referred to as the “issuer”) that gives the holder the right to acquire, either immediately or in the future, property all of which is a qualified investment for the plan trust or to receive a cash settlement in lieu of delivery of that property, where the property is (i) a share of the capital stock of, a unit of, or a debt issued by, the issuer or another person or partnership that does not, when the security is issued, deal at arm’s length with the issuer; or (ii) a warrant issued by the issuer or another person or partnership that does not, when the security is issued, deal at arm’s length with the issuer and that gives the holder the right to acquire a share or unit described in subparagraph (i); (b) gold (with a minimum fineness of 995 parts per 1000) or silver (with a minimum fineness of 999 parts per 1000), in the form of or represented by (i) a legal tender bullion coin produced by the Royal Canadian Mint that (A) has a fair market value at the particular time not exceeding 110 per cent of the fair market value of the coin’s gold or silver content, and (B) is acquired by the trust directly from the Royal Canadian Mint or from a bank, a trust company, a credit union, an insurance corporation or a registered securities dealer that is resident in Canada and subject by law to the supervision of a regulating authority that is the Superintendent of Financial Institutions or a similar authority of a province, (ii) a bullion bar, ingot or wafer produced by a refiner on the London Bullion Market Association’s good delivery list for gold or silver, as the case may be, that is (A) stamped with the fineness, weight and the refiner’s hallmark, and (B) acquired directly from the refiner or a person described in clause (i)(B), or (iii) a certificate issued by a person described in clause (i)(B) representing a claim of the holder of the certificate to property held by the issuer of the certificate if (A) the property would be property described in subparagraph (i) or (ii) if those subparagraphs were read without regard to their clause (B), and (B) the certificate is acquired by the trust directly from the issuer of the certificate or a person described in clause (i)(B); or (c) an interest of a limited partner in a small business investment limited partnership (within the meaning assigned by subsection 5102(1)) that (i) was acquired by the trust before January 1, 2027, (ii) was a qualified investment for the trust at the time it was acquired, and (iii) would, at the particular time, be a qualified investment for the trust under these Regulations as they read on December 31, 2026. Prescribed Credit Rating Agency 5005 For the purposes of subparagraphs (c)(v) and (vi) of the definition qualified investment in subsection 207.01(1) of the Act, each of the following is a prescribed credit rating agency: (a) A.M. Best Company, Inc.; (b) DBRS Limited; (c) Fitch Ratings, Inc.; (d) Moody’s Investors Service, Inc.; (e) Standard & Poor’s Financial Services LLC; and (f) a subsidiary or affiliate of a company listed in any of paragraphs (a) to (e), to the extent that it provides credit rating services outside of Canada on behalf of the company in respect of which it is the subsidiary or affiliate. Prescribed Prohibited Property 5006 For the purposes of paragraph (d) of the definition prohibited investment in subsection 207.01(1) of the Act, each of the following is a prescribed property for a trust at a particular time if at that time it is: (a) a share of the capital stock of a mortgage investment corporation that holds any indebtedness, whether by way of mortgage or otherwise, of a person who is a connected person under the registered plan governing the trust; (b) an option, a warrant or a similar right that is issued by a connected person under the registered plan governing the trust; (c) a bond, debenture, note or similar obligation issued by, or a deposit with, a credit union that granted any benefit or privilege as a result of the trust holding a share or obligation of, or a deposit with, the credit union to a person who is a connected person under the registered plan governing the trust, if the benefit was granted during the calendar year in which the particular time occurs or, where the person continues to enjoy the benefit or privilege, in a prior year; (d) a bond, debenture, note or similar obligation issued by a cooperative corporation (as defined in subsection 136(2) of the Act) that granted any benefit or privilege as a result of the trust holding a share or obligation of the corporation to a person who is a connected person under the registered plan governing the trust, if the benefit was granted during the calendar year in which the particular time occurs or, where the person continues to enjoy the benefit or privilege, in a prior year; (e) a bankers’ acceptance that represents an indebtedness of a Canadian corporation that is a connected person under the registered plan governing the trust; and (f) a share of the capital or capital stock of a specified cooperative corporation if (i) ownership of the share or a share identical to the share is a condition of membership in the corporation, and (ii) a connected person under the registered plan governing the trust (A) has received a payment from the corporation because of an allocation in proportion to patronage (as defined in subsection 135(4) of the Act) in respect of consumer goods or services (as defined in subsection 135(4) of the Act), or (B) can reasonably be expected to receive a payment described in clause (A), after the acquisition of the share by the plan trust. (2) Subsection (1) comes into force on January 1, 2027. 122 (1) The heading of Part LI of the Regulations is replaced by the following: Small Business Investments (2) Subsection (1) comes into force on January 1, 2027. 123 (1) The definition specified property in subsection 5100(1) of the Regulations is replaced by the following: specified property  means property described in paragraph (a) or (b), any of subparagraphs (c)(i) to (iv) or paragraph (f) of the definition qualified investment in subsection 207.01(1) of the Act. ( bien déterminé ) (2) Subsection (1) comes into force on January 1, 2027. 124 (1) Section 5600 of the Regulations is amended by striking out “and” at the end of paragraph (l), by adding “and” at the end paragraph (m) and by adding the following after paragraph (m): (n) the distribution by Novartis AG, on October 4, 2023 to its common shareholders, of common shares of Sandoz Group AG. (2) Subsection (1) is deemed to have come into force on October 4, 2023. 125 (1) Paragraph (a) of the definition exempt deficit in subsection 5907(1) of the Regulations is replaced by the following: (a) the total of all amounts each of which is an amount determined at that time under any of subparagraphs (i) to ( vii ) of the description of B in the definition exempt surplus (2) Subparagraph (vi) of the description of A in the definition exempt surplus in subsection 5907(1) of the Regulations is replaced by the following: (vi) an amount added to the exempt surplus of the subject affiliate or deducted from its exempt deficit in the period and before the particular time under subsection (1.092), (1.1), (1.14), (1.17) or (1.2), (3) The description of B in the definition exempt surplus in subsection 5907(1) of the Regulations is amended by striking out “or” at the end of subparagraph (v) and by replacing subparagraph (vi) with the following: (vi) an amount, in the period and before the particular time, deducted from the exempt surplus of the subject affiliate or added to its exempt deficit under subsection (1.092), (1.1), (1.14), (1.17) or (1.2), or (vii) the portion of any income or profits tax paid, in the period and before the particular time, to the government of a country by the subject affiliate under a domestic minimum top-up tax regime if that portion can reasonably be considered to be in respect of income or profits, as determined under that tax regime, of the subject affiliate that are derived from an activity the income, profit or gains from which would be included in computing the subject affiliate’s exempt earnings; ( surplus exonéré ) (4) Paragraph (a) of the definition hybrid deficit in subsection 5907(1) of the Regulations is replaced by the following: (a) the total of all amounts each of which is an amount determined at that time under any of subparagraphs (i) to (viii) of the description of B in the definition hybrid surplus (5) Subparagraph (v) of the description of A in the definition hybrid surplus in subsection 5907(1) of the Regulations is replaced by the following: (v) an amount added to the hybrid surplus of the subject affiliate or deducted from its hybrid deficit in the period and before the particular time under subsection (1.092), (1.1), (1.14), (1.17) or (1.2), and (6) The description of B in the definition hybrid surplus in subsection 5907(1) of the Regulations is amended by striking out “or” at the end of subparagraph (vi) and by replacing subparagraph (vii) with the following: (vii) an amount deducted from the hybrid surplus of the subject affiliate or added to its hybrid deficit in the period and before the particular time under subsection (1.092), (1.1), (1.14), (1.17) or (1.2), or (viii) the portion of any income or profits tax paid, in the period and before the particular time, to the government of a country by the subject affiliate under a domestic minimum top-up tax regime if that portion can reasonably be considered to be in respect of income or profits, as determined under that tax regime, of the subject affiliate that are derived from an activity the income, profit or gains from which would be included in computing the subject affiliate’s hybrid surplus; ( surplus hybride ) (7) The description of A in the definition hybrid underlying tax in subsection 5907(1) of the Regulations is amended by striking out “or” at the end of subparagraph (iii) and by replacing subparagraph (iv) with the following: (iv) the amount by which the subject affiliate’s hybrid underlying tax is required to be increased in the period and before the particular time under subsection (1.092), (1.1), (1.17) or (1.2), or (v) the portion of any income or profits tax referred to in subparagraph (viii) of the description of B in the definition hybrid surplus , (8) Subparagraph (iv) of the description of B in the definition hybrid underlying tax in subsection 5907(1) of the Regulations is replaced by the following: (iv) the amount by which the subject affiliate’s hybrid underlying tax is required to be decreased in the period and before the particular time under subsection (1.092), (1.1), (1.17) or (1.2); ( montant intrinsèque d’impôt hybride ) (9) Paragraph (a) of the definition taxable deficit in subsection 5907(1) of the Regulations is replaced by the following: (a) the total of all amounts each of which is an amount determined at that time under any of subparagraphs (i) to (vii) of the description of B in the definition taxable surplus (10) Subparagraph (iv) of the description of A in the definition taxable surplus in subsection 5907(1) of the Regulations is replaced by the following: (iv) an amount added to the taxable surplus of the subject affiliate or deducted from its taxable deficit in the period and before the particular time under subsection (1.092), (1.1), (1.14), (1.17) or (1.2), (11) The description of B in the definition taxable surplus in subsection 5907(1) of the Regulations is amended by striking out “or” at the end of subparagraph (v) and by replacing subparagraph (vi) with the following: (vi) an amount, in the period and before the particular time, deducted from the taxable surplus of the subject affiliate or added to its taxable deficit under subsection (1.092), (1.1), (1.14), (1.17) or (1.2), or (vii) the portion of any income or profits tax paid, in the period and before the particular time, to the government of a country by the subject affiliate under a domestic minimum top-up tax regime if that portion can reasonably be considered to be in respect of income or profits, as determined under that tax regime, of the subject affiliate that are derived from an activity the income, profit or gains from which would be included in computing the subject affiliate’s taxable earnings; ( surplus imposable ) (12) The description of A in the definition underlying foreign tax in subsection 5907(1) of the Regulations is amended by striking out “or” at the end of subparagraph (iv) and by replacing subparagraph (v) with the following: (v) the amount by which the subject affiliate’s underlying foreign tax is required to be increased in the period and before the particular time under subsection (1.092), (1.1), (1.17) or (1.2), or (vi) the portion of any income or profits tax referred to in subparagraph (vii) of the description of B in the definition taxable surplus , (13) Subparagraph (iv) of the description of B in the definition underlying foreign tax in subsection 5907(1) of the Regulations is replaced by the following: (iv) the amount by which the subject affiliate’s underlying foreign tax is required to be decreased in the period and before the particular time under subsection (1.092), (1.1), (1.17) or (1.2); ( montant intrinsèque d’impôt étranger ) (14) Subsection 5907(1) of the Regulations is amended by adding the following in alphabetical order: DMTT group , for a fiscal year, means one or more entities that are, for the fiscal year, members of the same MNE group (as defined in subsection 10(1) of the Global Minimum Tax Act ) and subject to a country’s domestic minimum top-up tax regime; ( groupe d‘ICMN ) domestic minimum top-up amount , for a fiscal year, of a foreign affiliate of a corporation resident in Canada that is subject to a domestic minimum top-up tax regime of a country, means the total of all amounts, each of which is a portion of the income or profits tax paid to the government of the country under that tax regime for the fiscal year that can reasonably be considered to be in respect of income or profits, as determined under that regime, of the affiliate that are derived from an activity the income, profit or gains from which would be included in computing the affiliate’s exempt earnings, hybrid surplus or taxable earnings, as the case may be; ( montant complémentaire minimum national ) domestic minimum top-up tax regime  means any provisions under the tax laws of a country that can reasonably be considered to have been enacted or otherwise brought into effect by the country with the intention of implementing a “Qualified Domestic Minimum Top-up Tax” within the meaning of the Tax Challenges Arising from the Digitalisation of the Economy — Global Anti-Base Erosion Model Rules (Pillar Two) , published by the Organisation for Economic Co-operation and Development; ( régime d’impôt complémentaire minimum national ) fiscal year , in respect of income or profits tax paid under a domestic minimum top-up tax regime, means the accounting period for which the income or profits subject to tax under that regime are determined; ( année financière ) (15) Section 5907 of the Regulations is amended by adding the following after subsection (1.01): (1.011) Except as otherwise expressly provided in this Part, no income or profits tax paid under a domestic minimum top-up tax regime is to be taken into account in determining any amounts referred to in the definitions exempt earnings , exempt surplus , hybrid surplus , hybrid underlying tax , net earnings , taxable earnings , taxable surplus and underlying foreign tax in subsection (1). (16) Section 5907 of the Regulations is amended by adding the following after subsection (1.13): (1.14) For the purposes of this Part, if a foreign affiliate (referred to in this subsection as the “primary affiliate”) of a corporation resident in Canada pays income or profits tax to the government of a country under a domestic minimum top-up tax regime for a fiscal year on behalf of itself and other foreign affiliates (referred to in this subsection as the “secondary affiliates”) of the corporation resident in Canada that are, together with the primary affiliate, members of a DMTT group, the following rules apply: (a) in respect of the primary affiliate, (i) any of the income or profits tax paid by the primary affiliate for the fiscal year that exceeds the primary affiliate’s domestic minimum top-up amount for the fiscal year is deemed, other than for the purposes of this subsection, subsection (1.16) and (1.17) and paragraph (1.18)(b), not to have been paid by the primary affiliate, and (ii) the domestic minimum top-up amount of a secondary affiliate is, at the end of the fiscal year, (A) to the extent that the income or profits tax would be, if it were paid to the government by the secondary affiliate, taken into account in determining the secondary affiliate’s exempt surplus or exempt deficit because of subparagraph (vii) of the description of B in the definition exempt surplus in subsection (1), to be deducted from the exempt surplus or added to the exempt deficit, as the case may be, of the primary affiliate, (B) to the extent that the income or profits tax would be, if it were paid to the government by the secondary affiliate, taken into account in determining the secondary affiliate’s hybrid surplus or hybrid deficit because of subparagraph (viii) of the description of B in the definition hybrid surplus in subsection (1), to be deducted from the hybrid surplus or added to the hybrid deficit, as the case may be, of the primary affiliate, and (C) to the extent that the income or profits tax would be, if it were paid to the government by the secondary affiliate, taken into account in determining the secondary affiliate’s taxable surplus or taxable deficit because of subparagraph (vii) of the description of B in the definition taxable surplus in subsection (1), to be deducted from the taxable surplus or added to the taxable deficit, as the case may be, of the primary affiliate; and (b) if, because the primary affiliate pays income or profits tax under the domestic minimum top-up tax regime for the fiscal year on behalf of the secondary affiliates, an amount is paid to the primary affiliate by a secondary affiliate in respect of the domestic minimum top-up amount of the secondary affiliate for the fiscal year, (i) in respect of the secondary affiliate, the amount so paid is deemed to be a payment of that income or profits tax to the government of a country by the secondary affiliate under that tax regime for the fiscal year, and (ii) in respect of the primary affiliate, (A) the portion of the amount so paid that is taken into account in determining the secondary affiliate’s exempt surplus or exempt deficit because of subparagraph (vii) of the description of B in the definition exempt surplus in subsection (1) is, at the end of the fiscal year, to be added to the exempt surplus or deducted from the exempt deficit, as the case may be, of the primary affiliate, (B) the portion of the amount so paid that is taken into account in determining the secondary affiliate’s hybrid surplus or hybrid deficit because of subparagraph (viii) of the description of B in the definition hybrid surplus in subsection (1) is, at the end of the fiscal year, to be added to the hybrid surplus or deducted from the hybrid deficit, as the case may be, of the primary affiliate, and (C) the portion of the amount so paid that is taken into account in determining the secondary affiliate’s taxable surplus or taxable deficit because of subparagraph (vii) of the description of B in the definition taxable surplus in subsection (1) is, at the end of the fiscal year, to be added to the taxable surplus or deducted from the taxable deficit, as the case may be, of the primary affiliate. (1.15) For the purposes of this subsection and subsections (1.14) and (1.16) to (1.192), (a) a non-resident corporation is deemed to be, at any time, a foreign affiliate (referred to in this subsection as a “deemed affiliate”) of a particular corporation resident in Canada if at that time (i) the deemed affiliate and the particular corporation are both members of the same MNE group (as defined in subsection 10(1) of the Global Minimum Tax Act ), and (ii) the deemed affiliate is a member of the same DMTT group referred to in subsection (1.14) as a foreign affiliate (other than a deemed affiliate) of the particular corporation; and (b) for any taxation year, any activities of a deemed affiliate that, in the absence of paragraph (a), would not be a foreign affiliate of a corporation resident in Canada are deemed to be activities the income, profit or gains from which would be included in computing the deemed affiliate’s exempt earnings. (1.16) Subsection (1.17) applies in respect of income or profits tax paid under a domestic minimum top-up tax regime of a country by a foreign affiliate (in this subsection and subsection (1.17) referred to as the “shareholder affiliate”) of a corporation resident in Canada for a fiscal year of the shareholder affiliate if (a) the shareholder affiliate pays the income or profits tax in respect of its income or profits, as determined under that domestic minimum top-up tax regime, for the fiscal year; (b) the income or profits tax is paid to the government of that country; (c) the shareholder affiliate has an equity percentage in another foreign affiliate (in this subsection and subsection (1.17) referred to as the “transparent affiliate”) of the taxpayer; and (d) a portion of the financial accounting income (as defined in subsection 17(1) of the Global Minimum Tax Act ) of the transparent affiliate for the fiscal year is taken into account in determining the shareholder affiliate’s income or profits, as determined under that tax regime. (1.17) If this subsection applies in respect of income or profits tax paid by a shareholder affiliate for a fiscal year (a) in respect of the shareholder affiliate, (i) despite subparagraph (1.14)(b)(i), any of the income or profits tax paid by the shareholder affiliate that exceeds the shareholder affiliate’s domestic minimum top-up amount for the fiscal year is deemed not to have been paid by the shareholder affiliate, and (ii) the portion of the income or profits tax deemed not to have been paid by the shareholder affiliate under subparagraph (i) for the fiscal year is, at the end of the fiscal year, (A) to the extent that the portion can reasonably be considered to be in respect of income or profits, as determined under the tax regime referred to in subsection (1.16), that are derived from an activity the income, profit or gains from which would be included in computing the transparent affiliate’s exempt earnings, to be deducted from the exempt surplus or added to the exempt deficit, as the case may be, of the shareholder affiliate, (B) to the extent that the portion can reasonably be considered to be in respect of income or profits, as determined under the tax regime referred to in subsection (1.16), that are derived from an activity the income, profit or gains from which would be included in computing the transparent affiliate’s hybrid surplus, (I) to be deducted from the hybrid surplus or added to the hybrid deficit, as the case may be, of the shareholder affiliate, and (II) to be added to the hybrid underlying tax of the shareholder affiliate, and (C) to the extent that the portion can reasonably be considered to be in respect of income or profits, as determined under the tax regime referred to in subsection (1.16), that are derived from an activity the income, profit or gains from which would be included in computing the transparent affiliate’s taxable earnings, (I) to be deducted from the taxable surplus or added to the taxable deficit, as the case may be, of the shareholder affiliate, and (II) to be added to the underlying foreign tax of the shareholder affiliate; and (b) where an amount is paid to the shareholder affiliate by the transparent affiliate in respect of the portion of income or profits tax referred to in subparagraph (a)(i), as a result of the shareholder affiliate paying income or profits tax under the tax regime referred to in subsection (1.16) for the fiscal year because a portion of the financial accounting income (as defined in subsection 17(1) of the Global Minimum Tax Act ) of the transparent affiliate for the fiscal year is taken into account in determining the shareholder affiliate’s income or profits, as determined under that tax regime, (i) in respect of the transparent affiliate, the amount so paid is deemed to be a payment of income or profits tax to the government of a country by the transparent affiliate under the tax regime referred to in subsection (1.16) for the fiscal year, and (ii) in respect of the shareholder affiliate, (A) the portion of the amount so paid that is taken into account in determining the transparent affiliate’s exempt surplus or exempt deficit because of subparagraph (vii) of the description of B in the definition exempt surplus in subsection (1) is, at the end of the fiscal year, to be added to the exempt surplus or deducted from the exempt deficit, as the case may be, of the shareholder affiliate, (B) the portion of the amount so paid that is taken into account in determining the transparent affiliate’s hybrid surplus or hybrid deficit because of subparagraph (viii) of the description of B in the definition hybrid surplus in subsection (1) is, at the end of the fiscal year, (I) to be added to the hybrid surplus or deducted from the hybrid deficit, as the case may be, of the shareholder affiliate, and (II) to be deducted from the hybrid underlying tax of the shareholder affiliate, and (C) the portion of the amount so paid that is taken into account in determining the transparent affiliate’s taxable surplus or taxable deficit because of subparagraph (vii) of the description of B in the definition taxable surplus in subsection (1) is, at the end of the fiscal year, (I) to be added to the taxable surplus or deducted from the taxable deficit, as the case may be, of the shareholder affiliate, and (II) to be deducted from the underlying foreign tax of the shareholder affiliate. (1.18) Subsection (1.19) applies in respect of a particular foreign affiliate of a corporation resident in Canada that is a secondary affiliate (within the meaning assigned by subsection (1.14)) and in respect of a foreign affiliate of the corporation that is the primary affiliate (within the meaning assigned by subsection (1.14)) in respect of the particular affiliate if (a) the particular affiliate has an equity percentage in another foreign affiliate (in this subsection and subsection (1.19) referred to as the “transparent affiliate”); (b) the primary affiliate pays income or profits tax under the domestic minimum top-up tax regime referred to in subsection (1.14) for the fiscal year on behalf of the particular affiliate; and (c) a portion of the financial accounting income (as defined in subsection 17(1) of the Global Minimum Tax Act ) of the transparent affiliate for the fiscal year is taken into account in determining the particular affiliate’s income or profits, as determined under that tax regime. (1.19) If this subsection applies in respect of a particular foreign affiliate and a primary affiliate (within the meaning assigned by subsection (1.14)), the following rules apply: (a) for the purposes of subparagraphs (1.14)(a)(ii) and (b)(i), any portion (referred to in this subsection as the “relevant portion”) of the income or profits tax paid for the fiscal year under the domestic minimum top-up tax regime referred to in subsection (1.18) in respect of the particular affiliate’s income or profits, as determined under that tax regime, that are derived from an activity the income, profit or gains from which would be included in computing the transparent affiliate’s exempt earnings, hybrid surplus or taxable earnings is deemed to be included in the particular affiliate’s domestic minimum top-up amount for the fiscal year; (b) to the extent that the relevant portion is in respect of an activity the income, profit or gains from which would be included in computing the transparent affiliate’s exempt earnings, it is deemed to be an amount that (i) for the purpose of subparagraph (1.14)(a)(ii), would, if it were paid by the particular affiliate, be taken into account in determining the particular affiliate’s exempt surplus or exempt deficit, as the case may be, because of subparagraph (vii) of the description of B in the definition exempt surplus in subsection (1), and (ii) for the purpose of subparagraph (1.14)(b)(ii), is taken into account in determining the particular affiliate’s exempt surplus or exempt deficit, as the case may be, because of subparagraph (vii) of the description of B in the definition exempt surplus in subsection (1); (c) to the extent that the relevant portion is in respect of an activity the income, profit or gains from which would be included in computing the transparent affiliate’s hybrid surplus, it is deemed to be an amount that (i) for the purpose of subparagraph (1.14)(a)(ii), would, if it were paid by the particular affiliate, be taken into account in determining the particular affiliate’s hybrid surplus or hybrid deficit, as the case may be, because of subparagraph (viii) of the description of B in the definition hybrid surplus in subsection (1), and (ii) for the purpose of subparagraph (1.14)(b)(ii), is taken into account in determining the particular affiliate’s hybrid surplus or hybrid deficit, as the case may be, because of subparagraph (viii) of the description of B in the definition hybrid surplus in subsection (1); and (d) to the extent that the relevant portion is in respect of an activity the income, profit or gains from which would be included in computing the transparent affiliate’s taxable earnings, it is deemed to be an amount that (i) for the purpose of subparagraph (1.14)(a)(ii), would, if it were paid by the particular affiliate, be taken into account in determining the particular affiliate’s taxable surplus or taxable deficit, as the case may be, because of subparagraph (vii) of the description of B in the definition taxable surplus in subsection (1), and (ii) for the purpose of subparagraph (1.14)(b)(ii), is taken into account in determining the particular affiliate’s taxable surplus or taxable deficit, as the case may be, because of subparagraph (vii) of the description of B in the definition taxable surplus in subsection (1). (1.191) For the purposes of subparagraph (vii) of the description of B in the definition exempt surplus in subsection (1), subparagraph (viii) of the description of B in the definition hybrid surplus in subsection (1), subparagraph (vii) of the description of B in the definition taxable surplus in subsection (1), subparagraph (v) of the description of A in the definition hybrid underlying tax in subsection (1) and subparagraph (vi) of the description of A in the definition underlying foreign tax in subsection (1), the income or profits, as determined under a domestic minimum top-up tax regime, for a fiscal year of a foreign affiliate of a corporation resident in Canada includes the income or profits, as determined under that tax regime, for the fiscal year of another entity that is not a foreign affiliate of the corporation to the extent that the income or profits, as determined under that tax regime, of the other entity are derived from an activity the income, profit or gains from which would be included in computing the affiliate’s exempt earnings, hybrid surplus or taxable earnings, as the case may be. (1.192) For the purposes of this Part, the income or profits tax payable under a domestic minimum top-up tax regime for a fiscal year that can reasonably be considered to be in respect of the income or profits, as determined under that tax regime, of a foreign affiliate of a taxpayer that is a member of the DMTT group for the fiscal year is the amount determined under that tax regime to be the income or profits tax payable for the fiscal year in respect of those income or profits. (1.193) Despite any other provision of these Regulations, if a particular amount of income or profits tax payable under a domestic minimum top-up tax regime of a country other than Canada was determined taking into account any tax imposed under the Act (other than any tax imposed under Part XIII of the Act), no amount paid in respect of that particular amount is to be included in determining any amounts referred to in the definitions hybrid underlying tax and underlying foreign tax in subsection (1). (17) Subsection 5907(1.3) of the Regulations is amended by striking out “and” at the end of paragraph (a), by adding “and” at the end of paragraph (b) and by adding the following after paragraph (b): (c) if paragraph (1.14)(b) applies (or would apply, if the taxpayer were a corporation resident in Canada) in respect of an amount paid by the particular affiliate, or a shareholder affiliate of the particular affiliate, to a primary affiliate (within the meaning assigned by subsection (1.14)), then the amount paid by the particular affiliate, or the shareholder affiliate, to the primary affiliate is prescribed to be foreign accrual tax applicable to a particular amount that is included under subsection 91(1) of the Act in computing the taxpayer’s income for a taxation year of the taxpayer to the extent that the amount can reasonably be considered to be in respect of income or profits, as determined under the domestic minimum top-up tax regime referred to in subsection (1.14), of the particular affiliate or the shareholder affiliate, as the case may be, that are derived from an activity the income, profit or gains from which are included in the particular affiliate’s foreign accrual property income that is included in the particular amount. (18) Subsections (1) to (17) are deemed to have come into force on December 31, 2023. 126 Section 6400 of the Regulations and the heading “Child Tax Credits” before it are repealed. 127 The portion of section 6701 of the Regulations before paragraph (a) is replaced by the following: 6701 For the purposes of paragraph 6702(b) of these Regulations and paragraph 40(2)(i), clause 53(2)(k)(i)(C), the definition public corporation in subsection 89(1), the definition specified investment business in subsection 125(7), the definition approved share in subsection 127.4(1), subsections 131(8) and (11), section 186.1, the definition financial intermediary corporation in subsection 191(1), the definition eligible investment in subsection 204.8(1), and subsections 204.81(8.3) and 211.8(1) of the Act, prescribed labour-sponsored venture capital corporation means, at any particular time, 128 Paragraph 6702(b) of the Regulations is replaced by the following: (b) a tax credit provided in respect of, or for the acquisition of, a share of a prescribed labour-sponsored venture capital corporation; and 129 Section 6803 of the Regulations is replaced by the following: 6803 For the purposes of the definition foreign retirement arrangement in subsection 248(1) of the Act, a prescribed plan or arrangement is a plan or arrangement to which subsection 401(k) or 408(a), (b) or (h) of the United States’ Internal Revenue Code of 1986 , as amended from time to time, applies. 130 (1) Subparagraph 8303(6)(a)(i) of the Regulations is replaced by the following: (i) in accordance with any of subsections 146(16), 146.3(14) and (14.1) , 147(19) and 147.3(2), (5) and (7) of the Act, or (2) Subsection (1) is deemed to have come into force on January 1, 2025. 131 (1) Subsection 8304(11) of the Regulations is replaced by the following: (11) Subsection (10) does not apply to a past service event in relation to an individual pension plan if the provisional PSPA of the member determined under subsections 8303(3) and 8304(5) would be nil if no qualifying transfers were made in connection with the past service event. (2) Subsection (1) is deemed to have come into force on January 1, 2024. 132 (1) Paragraph 8308(5.2)(c) of the Regulations is replaced by the following: (c) the retroactive contribution replaces, in whole or in part, a contribution that would have been required to be made to the plan in the calendar year 2020 or 2021 but for an amendment made to the plan under section 8511 that reduced the contributions required to be made. (2) Subsection (1) is deemed to have come into force on August 12, 2024. 133 Subparagraph 8502(b)(iv) of the Regulations is replaced by the following: (iv) is transferred to the plan in accordance with any of subsections 146(16), 146.3(14) and (14.1), 147(19), 147.3(1) to (8) and 147.5(21) of the Act, 134 (1) Subparagraph 8503(2)(e)(i) of the Regulations is replaced by the following: (i) no other benefits (other than benefits permissible under paragraph (g), (i) , (j), (l.1) or (n)) are payable as a consequence of the member’s death, (2) Subparagraphs 8503(2)(i)(i) and (ii) of the Regulations are replaced by the following: (i) no retirement benefits are payable as a consequence of the member’s death, other than survivor retirement benefits described in subparagraph (e)(iv) payable to an individual that does not receive an amount under this paragraph , and (ii) the aggregate of all amounts, each of which is such a single amount (other than its portion, if any, that can reasonably be considered to be interest, computed at a rate not exceeding a reasonable rate, in respect of the period from the day of death of the member to the day the single amount is paid), does not exceed the present value, immediately before the death of the member or at any other time allowed under the Pension Benefits Standards Act, 1985 or similar law of a province, of all benefits that have accrued under the provision with respect to the member to the day of the member’s death less the present value of any survivor retirement benefits described in subparagraph (e)(iv) ; (3) The portion of subparagraph 8503(4)(a)(i) of the Regulations before clause (A) is replaced by the following: (i) in the case of a plan that is subject to a designated provision of the law of Canada or a province , the aggregate amount of current service contributions to be made by a member in respect of a calendar year, no part of which is a period of disability or an eligible period of reduced pay or temporary absence of the member, does not exceed the lesser of (4) Paragraph 8503(4)(a) of the Regulations is amended by adding the following after subparagraph (i): (i.1) in the case of a plan that is not subject to a designated provision of the law of Canada or a province, the aggregate amount of current service contributions to be made by a member in respect of a calendar year, no part of which is a period of disability or an eligible period of reduced pay or temporary absence of the member, does not exceed the money purchase limit for the year, (5) Paragraph 8503(4)(f) of the Regulations is replaced by the following: (f) if lifetime retirement benefits are provided under the provision to a member in respect of a period of disability of the member, the benefits, to the extent that they would not be in accordance with paragraph (3)(a) if that paragraph were read without reference to its subparagraph (iv), are not paid before the plan administrator has received from a medical doctor, a nurse practitioner or a psychologist , who is licensed to practise under the laws of a province or of the place where the member resides a written report providing the information on the medical condition of the member taken into account by the administrator in determining that the period is a period of disability. (6) Subsection 8503(5) of the Regulations is replaced by the following: (5) The Minister may waive the condition in subparagraph (4)(a)(i) if member contributions under a defined benefit provision of a pension plan are determined in a manner acceptable to the Minister and it is reasonable to expect that, on a long-term basis, the aggregate of the regular current service contributions made under the provision by all members will not exceed 1/2 of the amount that is required to fund the aggregate benefits in respect of which those contributions are made. (7) Subsections (1) to (6) are deemed to have come into force on January 1, 2025. 135 (1) Clause 8506(1)(e.2)(iii)(A) of the Regulations is replaced by the following: (A) a benefit described in any of paragraphs (b) to (e), (i) and (j) , (2) Subsection 8506(1) of the Regulations is amended by striking out “and” at the end of paragraph (h), by adding “and” at the end of paragraph (i) and by adding the following after paragraph (i): Capital Guarantee (j) the payment with respect to one or more beneficiaries of one or more single amounts after the death of the last annuitant if (i) the payments are the last payments to be made under the annuity contract, and (ii) the aggregate amount to be paid does not exceed the amount determined by the formula A + B − C where A is the total of all amounts transferred to a licensed annuities provider to acquire the annuity, B is the amount of interest, if any, calculated in respect of the amount determined for A at a rate that (A) is required by the Pension Benefits Standards Act, 1985 or a similar law of a province, or (B) if clause (A) does not apply, does not exceed a reasonable rate, and C is the total amount of all annuity payments made under the annuity contract. (3) Paragraph 8506(13)(a) of the Regulations is amended by striking out “or” at the end of subparagraph (i), by adding “or” at the end of subparagraph (ii) and by adding the following after subparagraph (ii): (iii) transferred to the arrangement from a VPLA fund under another registered pension plan (referred to in this subparagraph as a “transferor fund”), at the discretion of the administrator of the transferor fund, to replace VPLA benefits of one or more of the participants of the transferor fund by benefits provided under the arrangement; (4) Subsections (1) and (2) are deemed to have come into force on August 12, 2024. (5) Subsection (3) is deemed to have come into force on January 1, 2024. 136 (1) Section 8512 of the Regulations and the heading before it are repealed. (2) Subsection (1) is deemed to have come into force on August 12, 2024. 137 (1) Section 8513 of the Regulations is replaced by the following: 8513 For the purposes of paragraph 8302(3)(m), subparagraph 8502(c)(iii), subsection 8503(4) and paragraph 8517(5)(f), designated provision of the law of Canada or a province means section 21 of the Pension Benefits Standards Act, 1985 and any provision of a law of a province that is similar to that section. (2) Subsection (1) is deemed to have come into force on August 12, 2024. 138 (1) Subsection 8514(2) of the Regulations is amended by striking out “or” at the end of paragraph (e), by adding “or” at the end of paragraph (f) and by adding the following after paragraph (f): (g) except in the case of an individual pension plan, a share of the capital stock of, an interest in, or a debt (in this paragraph referred to as the “investment”) of a person or partnership that does not deal at arm’s length with a participating employer if (i) the investment is a prohibited investment solely because a person described in any of paragraphs (a) to (d) of the definition restricted financial institution in subsection 248(1) of the Act, or a person affiliated with that person, participates in the registered pension plan, and (ii) no person receives a benefit that it is reasonable to consider, having regard to all the circumstances, is attributable, directly or indirectly, to the registered pension plan holding the investment, if holding the investment (A) would not have occurred in a normal commercial or investment context in which parties deal with each other at arm’s length and act prudently, knowledgeably and willingly, and (B) had as one of its main purposes to enable a person or partnership to benefit from the exemption from tax under Part I of the Act of any amount in respect of the registered pension plan. (2) Subsection (1) is deemed to have come into force on August 15, 2025. 139 (1) Subsection 8516(1) of the Regulations is replaced by the following: 8516 (1) For the purposes of subsection 147.2(2) of the Act, a contribution described in subsection (2), (3) or (4) is a prescribed contribution. (2) Section 8516 of the Regulations is amended by adding the following after subsection (3): Transfer deficiency — designated plan (4) A contribution that is made by an employer to a registered pension plan is described in this subsection if (a) the plan is not an individual pension plan; and (b) the contribution (i) complies with the conditions in subparagraphs 8516(3)(a)(ii) and (iii), (ii) is made in connection with a settlement of a member’s entitlement, or a beneficiary’s entitlement, to benefits at a time when the transfer ratio of the provision is less than 1 (determined in accordance with the pension standards legislation that applies to the plan), and (iii) does not exceed the amount determined by the formula A × (1 – B) where A is the present value of the benefits that are transferred or paid on behalf of the member, and B is the transfer ratio of the defined benefit provision as determined in the last actuarial valuation report that was prepared before the transfer date. (3) Subsections (1) and (2) are deemed to have come into force on August 15, 2025. 140 (1) Paragraph 9005(a) of the Regulations is repealed. (2) Subsection (1) applies to the 2027 and subsequent calendar years. 141 (1) Section 9006 of the Regulations is amended by striking out “and” at the end of paragraph (k), by adding “and” at the end of paragraph (l) and by adding the following after paragraph (l): (m) an account (i) that is an equity or debt interest in a prescribed labour-sponsored venture capital corporation , as defined in section 6701, and (ii) unless that account is held in an account described in any of paragraphs (a) to (l), to which the total value of contributions in any calendar year does not exceed 50, 000 USD. (2) Subsection (1) applies to the 2027 and subsequent calendar years. 142 (1) Subparagraph (a)(iii) of Class 57 in Schedule II to the Regulations is replaced by the following: (iii) generates or distributes electrical energy, heat energy or a combination of electrical and heat energy, that directly and solely supports a qualified CCUS project, excluding equipment that (A) supports the qualified CCUS project indirectly by way of an electrical utility grid, (B) expands the capacity of existing equipment that supports the qualified CCUS project and that distributes electrical energy, heat energy or a combination of electrical and heat energy, or (C) uses fossil fuels and emits carbon dioxide that is not subject to capture by a qualified CCUS project, unless the fossil fuels are used for one or a combination of the following activities : (I) starting up the equipment for no more than 120 hours per startup, and (II) fuelling the equipment for any purpose for no more than 72 hours per calendar year, (2) Subsection (1) is deemed to have come into force on January 1, 2022. Coordinating Amendments Bill C-30 143 (1) Subsections (2) to (5) apply if Bill C-30, introduced in the 1st session of the 45th Parliament and entitled the Spring Economic Update 2026 Implementation Act , receives royal assent. (2) The portion of paragraph (a) of the description of A.1 in subsection 1100(2) of the Income Tax Regulations before subparagraph (i), as enacted by subsection 114 (3) of this Act, is replaced by the following: (a) if the property is not included in subparagraph (1)(a.1)(i), paragraph (1)(v) or (ze) or in any of Classes 12, 13, 14, 15, 43.1, 44, 46, 50, 53, 54, 55, 56 and 59 or in Class 43 in the circumstances described in paragraph (f), (3) Subsection 1100(3) of the Income Tax Regulations , as enacted by 114 (4) of this Act, is replaced by the following: (3) Where a taxation year is less than 12 months, the amount allowed as a deduction under this section, other than under subsection (0.1) and any of subparagraph (1)(a.1)(i) and paragraphs (1)(c), (e), (f), (g), (m), (w), (x), (y), (ya) and (ze), shall not exceed that proportion of the maximum amount otherwise allowable that the number of days in the taxation year is of 365. (4) The portion of subsection 1102(20.1) of the Income Tax Regulations before paragraph (b), as enacted by subsection 116 (1) of this Act, is replaced by the following: (20.1) For the purposes of subsections 1100(0.3), (2.02) and (2.021) and 1104(2), (3.1), (4) and (4.01), a particular person or partnership and another person or partnership shall be considered not to be dealing at arm’s length with each other in respect of the acquisition or ownership of a property if, in the absence of this subsection, they would be considered to be dealing at arm’s length with each other and it may reasonably be considered that the principal purpose of any transaction or event, or a series of transactions or events, is to cause (a) the property to qualify as accelerated investment incentive property, reaccelerated investment incentive property, immediate expensing property, an eligible manufacturing building or an eligible greenhouse; or (5) The portion of paragraph (a) of the description of A.1 in subsection 1100(2) of the Income Tax Regulations before subparagraph (i), as enacted by subsection (2), is deemed to have come into force on November 4, 2025. (6) Subsection 1100(3) of the Income Tax Regulations , as enacted by subsection (3), is deemed to have come into force on November 4, 2025. (7) The portion of subsection 1102(20.1) of the Income Tax Regulations before paragraph (b), as enacted by subsection (4), is deemed to have come into force on November 4, 2025. PART 2 Amendments to the Global Minimum Tax Act and Related Legislation 2024, c. 17, s. 81 Global Minimum Tax Act 144 (1) The definition reverse hybrid entity in subsection 2(1) of the Global Minimum Tax Act is repealed. (2) The definitions substitute loss carry-forward recapture amount and unclaimed accrual in subsection 2(1) of the Act are replaced by the following: substitute loss carry-forward recapture amount , of a constituent entity that is located in a particular jurisdiction, means an amount if (a) the amount is offset, in determining the constituent entity’s taxable income for a taxation year, against another amount (referred to in this definition as the “income amount”) in respect of the income of (i) another entity (referred to in this definition as the “foreign subsidiary”) that is located in a jurisdiction other than the particular jurisdiction and in which the constituent entity holds, directly or indirectly, an ownership interest, or (ii) a permanent establishment in respect of which the constituent entity is the main entity; (b) the amount would be a domestic source tax loss for the taxation year of the constituent entity if it were not offset against the income amount or is a domestic source tax loss carry-forward claimed in the taxation year by the constituent entity (referred to in this definition as the “consumed domestic loss”); and (c) the income tax laws of the particular jurisdiction allow the consumed domestic loss to be recaptured by the constituent entity in subsequent taxation years, by recharacterizing amounts of domestic source income of the constituent entity as amounts in respect of income of the foreign subsidiary or permanent establishment, or as amounts of income from another foreign source, that are included in computing the constituent entity’s taxable income in the particular jurisdiction. ( montant de récupération du report de pertes de remplacement ) unclaimed accrual , of a constituent entity of an MNE group for a fiscal year, means an increase in a deferred tax liability, or aggregation of deferred tax liabilities , recorded in the financial accounts of the constituent entity for the fiscal year if (a) the following conditions are met: (i) the increase is not expected to reverse, or to be considered to have reversed , on or before the last day of the fifth fiscal year following the fiscal year, and (ii) the filing constituent entity of the MNE group elects to not include the increase in determining the constituent entity’s total deferred tax adjustment amount for the fiscal year; or (b) an election under subsection 25(7) applies to the increase. ( accumulation non réclamée ) (3) The definitions RDIR and RPII in subsection 2(1) of the French version of the Act are replaced by the following: RDIR  S’entend d’une loi d’une juridiction qui peut raisonnablement être considérée comme ayant été édictée dans l’intention de mettre en œuvre, en tout ou en partie, les articles 2.1 à 2.3 des règles GloBE. ( IIR ) RPII  S’entend d’une loi d’une juridiction qui peut raisonnablement être considérée comme ayant été édictée dans l’intention de mettre en œuvre, en tout ou en partie, les articles 2.4 à 2.6 des règles GloBE. ( UTPR ) (4) Subparagraphs (a)(ii) and (iii) of the definition filing constituent entity in subsection 2(1) of the Act are replaced by the following: (ii) the designated local entity (as appointed under paragraph 60(3)(a)) for the fiscal year, (iii) the qualifying foreign filing entity , as defined in subsection 55(1), for the fiscal year, or (iv) the ultimate parent entity or the designated filing entity , as defined in subsection 55(1), in respect of the MNE group for the fiscal year that is located in a jurisdiction other than Canada and that files a complete or substantially complete GIR for the fiscal year, in the prescribed form and manner with the Minister, on or before the GIR due date , as defined in subsection 55(1); and (5) Paragraph (a) of the definition recapture exception accrual in subsection 2(1) of the Act is replaced by the following: (a) cost recovery allowance in respect of a tangible asset; (6) The portion of the definition substitute loss carry-forward tax credit in subsection 2(1) of the Act before paragraph (c) is replaced by the following: substitute loss carry-forward tax credit , of a constituent entity that is located in a particular jurisdiction, means all or a portion of a tax credit of the constituent entity that (a) arises under the income tax laws of the particular jurisdiction in respect of tax paid to the government of a jurisdiction other than the particular jurisdiction by (i) another entity (referred to in this definition as the “foreign subsidiary ”) that is located in a jurisdiction other than the particular jurisdiction, in which the constituent entity holds, directly or indirectly, an ownership interest, on income (referred to in this definition as the “foreign subsidiary income”) of the foreign subsidiary, or (ii) the constituent entity, on income (referred to in this definition as the “PE income”) of a permanent establishment in respect of which the constituent entity is the main entity; (b) is not used in the particular taxation year in which it arises because the income tax laws of the particular jurisdiction require, in determining the constituent entity’s taxable income, that an amount claimed in the particular taxation year in respect of a domestic source tax loss carry-forward, or an amount that would be a domestic source tax loss of the constituent entity in the absence of the foreign subsidiary income or PE income in the particular taxation year, be offset against the foreign subsidiary income or PE income in priority to the use of the tax credit, or portion of the tax credit, to reduce or eliminate any covered taxes for which the constituent entity would otherwise be liable in respect of that income under the income tax laws of the particular jurisdiction; and (7) The portion of paragraph (d) of the definition états financiers consolidés in subsection 2(1) of the French version of the Act before subparagraph (i) is replaced by the following: d) si l’entité n’établit pas d’états financiers visés aux alinéas a) à c), des états financiers — dans lesquels les actifs, les passifs, les produits, les charges et les flux de trésorerie de cette entité et d’autres entités sont présentés comme les éléments d’une seule entité économique — qui auraient été établis en application d’une norme de comptabilité financière agréée qui, selon le cas : (8) Subsection 2(1) of the Act is amended by adding the following in alphabetical order: private investment entity , for a fiscal year, means an entity (a) that files a prescribed form with the Minister in respect of the fiscal year or any prior fiscal year on or before the GIR due date (as defined in subsection 55(1)) for the fiscal year or prior fiscal year, as the case may be; (b) that is located in Canada; (c) that does not have any of its ownership interests quoted on a securities market; (d) the controlling interest in which is not held, directly or indirectly, by an entity that has any of its ownership interests quoted on a securities market; (e) that holds, directly or indirectly, a controlling interest in at least one corporation (referred to in this definition as a “subsidiary public company”) that is located in Canada and that has a class of shares of its capital stock listed on a designated stock exchange (as defined in subsection 248(1) of the Income Tax Act ); (f) whose assets, liabilities, income, expenses and cash flows are included in an entity’s consolidated financial statements that are described in paragraph (d) of the definition consolidated financial statements and that include the assets, liabilities, income, expenses and cash flows of a subsidiary public company; and (g) that prepares — or the controlling interest in which is held, directly or indirectly, by an entity (referred to in this paragraph as the “controlling entity”) that prepares — actual financial statements in accordance with the Accounting Standards for Private Enterprises established by the Accounting Standards Board (Canada) and that chooses — or the controlling entity in respect of which chooses — under paragraph 1591.24(b) of those standards, to not consolidate its subsidiaries. ( entité d’investissement privée ) securitization entity  means an entity that (a) is a participant in one or more arrangements, each of which (i) is implemented for the purpose of pooling and repackaging a portfolio of assets (or exposures to assets) for investors that are not constituent entities of the same MNE group as the entity in a manner that legally segregates one or more identified pools of assets, and (ii) seeks through contractual agreements to limit the exposure of those investors to the risk of insolvency of an entity that holds the legally segregated assets by controlling the ability of identified creditors of that entity (or of another entity that is a participant in the arrangement) to make claims against an entity that is a participant in the arrangement through legally binding documentation entered into by those creditors; and (b) meets the following conditions: (i) the entity only carries out activities that facilitate one or more arrangements described in paragraph (a), (ii) the entity grants security over its assets in favour of its creditors (or the creditors of another securitization entity), (iii) the entity pays out all cash received from its assets to its creditors (or the creditors of another securitization entity) on an annual or more frequent basis, other than (A) cash retained to meet an amount of profit required by the documentation of the arrangement, for eventual distribution to equity holders (or equivalent), or (B) cash reasonably required under the terms of the arrangement to (I) make provision for future payments which are required, or will likely be required, to be made by the entity under the terms of the arrangement, or (II) maintain or enhance the creditworthiness of the entity, and (iv) the amount of profit referred to in clause (iii)(A) for a fiscal year is negligible relative to the revenues of the entity for the fiscal year. ( entité de titrisation ) (9) Subsections (1) to (8) apply to fiscal years of a qualifying MNE group that begin on or after December 31, 2023. 145 (1) Subsection 3(1) of the Act is replaced by the following: Interpretation 3 (1) This Part, Part 2, Part 2.1 and relevant provisions of Part 5 implement the GloBE Model Rules, the GloBE Commentary and the administrative guidance in respect of the GloBE Model Rules approved by the Inclusive Framework and published by the OECD from time to time and, unless the context otherwise requires, these Parts and provisions are to be interpreted consistently with those sources, as amended from time to time. (2) Subsection (1) applies to fiscal years of a qualifying MNE group that begin on or after December 31, 2025. 146 (1) Paragraph 5(1)(b) of the Act is replaced by the following: (b) in any other case, in the jurisdiction where it was created or last continued . (2) Subsection (1) applies to fiscal years of a qualifying MNE group that begin on or after December 31, 2023. 147 (1) Subsection 7(1) of the Act is replaced by the following: Currency conversion — GloBE calculations 7 (1) Subject to subsection (2), if a particular amount is relevant to the determination of the top-up amount, or of any other amount or result relevant to the determination of the top-up amount, of a constituent entity of an MNE group for a fiscal year, (a) the currency in which the particular amount is to be denominated for use in that determination is the reporting currency of the consolidated financial statements of the ultimate parent entity of the MNE group for the fiscal year; and (b) in cases where the particular amount is denominated in a currency other than the reporting currency and is not converted to the reporting currency in the course of preparing the consolidated financial statements, it is to be converted, for use in that determination , to the reporting currency using the foreign currency translation principles of the financial accounting standard that would have been used to convert the amount to the reporting currency if that conversion were undertaken in the course of preparing the consolidated financial statements. (2) Paragraph 7(3)(a) of the French version of the Act is replaced by the following: a) la monnaie dans laquelle cette somme doit être libellée aux fins d’utilisation dans le calcul est la monnaie de présentation des états financiers consolidés de l’entité mère ultime du groupe d’EMN; (3) Paragraph 7(3)(b) of the Act is replaced by the following: (b) in cases where that amount would not, in the absence of this paragraph, be denominated in the reporting currency, it is to be converted, for use in the determination or computation, to the reporting currency using the average for the fiscal year of the daily rates of exchange quoted by the Bank of Canada or, if there is no daily rate quoted by the Bank of Canada for a particular day, a daily rate of exchange acceptable to the Minister, in respect of the two currencies. (4) Subsections (1) to (3) apply to fiscal years of a qualifying MNE group that begin on or after December 31, 2023. 148 (1) Section 9 of the Act is amended by adding the following after subsection (2): Private investment entities — de-consolidation (2.1) If a private investment entity for a fiscal year would, in the absence of this subsection, be a constituent entity of a qualifying MNE group (referred to in this subsection and subsection (2.2) as the “actual group”) for the year, the following rules apply: (a) subject to paragraph (b), the private investment entity is deemed to not have, directly or indirectly, any controlling interest for the fiscal year in any entity that (i) would, in the absence of this paragraph, be a constituent entity of the actual group, (ii) is a corporation located in Canada, and (iii) has a class of shares of its capital stock listed on a designated stock exchange (as defined in subsection 248(1) of the Income Tax Act ); (b) paragraph (a) does not apply for the purposes of (i) the definition private investment entity in subsection 2(1), (ii) subsections 18(13), (14) and (18) in calculating the GloBE income or loss, and subsections 48(4) to (9) in calculating the adjusted covered taxes, of any entity (referred to in this paragraph as a “subject entity”) that would, in the absence of paragraph (a), be a constituent entity of the actual group, except in determining (A) the effective tax rate referred to in clause 18(14)(b)(ii)(B), and (B) whether a subject entity is a low-tax entity or a high-tax counterparty referred to in subsection 18(18), (iii) paragraph 32(15)(d) in calculating the carrying value of an eligible tangible asset of a subject entity, (iv) determining if the condition in paragraph 33(1)(b) or (c) is met, (v) the definitions deduction/non-inclusion arrangement , duplicate loss arrangement and duplicate tax recognition arrangement in subsection 47(1) in calculating the qualifying income tax expense of a subject entity and the profit (loss) before income tax for the jurisdiction in which a subject entity is located, and (vi) the de minimis threshold test in subsection 47(3); (c) if, because of paragraph (a), two or more entities (or a main entity and one or more of its permanent establishments) that would be constituent entities of the actual group form a different group, or an entity that would be a constituent entity of the actual group is not included in any group, that group or entity, as the case may be, is deemed to be a qualifying MNE group for the fiscal year; and (d) if, because of paragraph (c), a single entity (other than a main entity in respect of a permanent establishment) is deemed to be a qualifying MNE group, (i) that entity is deemed to be the ultimate parent entity of the group for the fiscal year, and (ii) the consolidated financial statements of that ultimate parent entity for the fiscal year are the financial statements of that entity that are or would be prepared in accordance with an authorized financial accounting standard that is (A) an acceptable financial accounting standard, or (B) a financial accounting standard that is adjusted to prevent any material competitive distortions. De-consolidation — avoidance transactions (2.2) Subsection (2.1) does not apply in respect of an actual group if one of the main purposes of any transaction or event is to render that subsection applicable to the actual group. (2) Subsection (1) applies to fiscal years of a qualifying MNE group that begin on or after December 31, 2023. 149 (1) The portion of subsection 15(1) of the Act before the formula is replaced by the following: Top-up tax payable 15 (1) The amount of the tax a person must pay under this Part in respect of an MNE group for a fiscal year is equal to the total of all amounts, each of which is an amount determined by the formula (2) Paragraph (b) of the description of B in subsection 15(1) of the Act is replaced by the following: (b) the allocable share, of the top-up amount of the constituent entity for the fiscal year, of a relevant parent entity of the MNE group — that is located in a jurisdiction where the constituent entity is subject to a qualified IIR — through which the person referred to in paragraph (a), or the relevant parent entity referred to in paragraph (b), of the description of A indirectly holds an ownership interest in the constituent entity. (3) Subsections (1) and (2) apply to fiscal years of a qualifying MNE group that begin on or after December 31, 2023. 150 (1) Subsection 17(6) of the Act is replaced by the following: Financial accounting income — flow-through entity (6) If a constituent entity is a flow-through entity, the following rules apply in determining the financial accounting income for a fiscal year of the flow-through entity and any other group entities in respect of the net income or loss of the flow-through entity: (a) amounts in respect of the flow-through entity’s net income or loss that are attributable to ownership interests of persons or entities that are not group entities and that hold their ownership interests in the flow-through entity directly, or through one or more other flow-through entities that are group entities in respect of the flow-through entity, must not be included in computing the financial accounting income of any group entity, unless (i) the flow-through entity is an ultimate parent entity, or (ii) the flow-through entity is owned, directly or through one or more flow-through entities that are group entities in respect of the flow-through entity , by an ultimate parent entity that is also a flow-through entity, in which case this paragraph does not apply to amounts in respect of the flow-through entity’s net income or loss to the extent those amounts are attributable to persons or entities that hold their ownership interests in the flow-through entity through that ultimate parent entity; (b) if a particular group entity has an ownership interest in the flow-through entity, an amount that, in the absence of this paragraph — and, for greater certainty, after excluding amounts to which paragraph (a) applies and amounts allocated to a permanent establishment in accordance with paragraph (1)(b) — would be included in the financial accounting income of the flow-through entity is excluded from its financial accounting income and included in the financial accounting income of the particular group entity in accordance with the particular group entity’s ownership interest (determined having regard only to ownership interests held by group entities) in the flow-through entity, to the extent that (i) the flow-through entity is not an ultimate parent entity, (ii) the flow-through entity is fiscally transparent in relation to the particular group entity, (iii) the particular group entity is not a flow-through entity, other than an ultimate parent entity, and (iv) the particular group entity holds its ownership interest in the flow-through entity (A) directly, or (B) indirectly, through a tax transparent structure ; and (c) any amount of the net income or loss of the flow-through entity that is not excluded in computing its financial accounting income because of paragraph (a) or (b), or subsection (3), is included in the financial accounting income of the flow-through entity. (2) Subsection (1) applies to fiscal years of a qualifying MNE group that begin on or after December 31, 2023. 151 (1) Section 18 of the Act is amended by adding the following after subsection (26): Adjustments for impairments and reversals (27) If the conditions in subsection 25(9) are met in respect of a particular impairment loss or reversal of an impairment loss in respect of an asset of a constituent entity, the constituent entity’s GloBE income or loss is to be determined (a) using the adjusted GloBE carrying value (within the meaning assigned by subsection 25(8)) of the asset after taking into account (i) all reductions and increases referred to in paragraphs 25(10)(a) and (b), respectively, for all impairments and reversals in respect of the asset that occurred prior to the particular impairment loss or reversal, (ii) in the case of a particular impairment loss, the reduction referred to in paragraph 25(10)(a) in respect of the particular impairment loss, and (iii) in the case of a particular reversal, the increase referred to in paragraph 25(10)(b) in respect of the particular reversal; and (b) on the basis that the amount of the particular impairment loss or reversal, as the case may be, is deemed to be equal to the absolute value of the difference between (i) the carrying value determined under paragraph (a), and (ii) the carrying value that would be determined under paragraph (a) if that paragraph were read without reference to its subparagraphs (ii) and (iii). (2) Subsection (1) applies to fiscal years of a qualifying MNE group that begin on or after December 31, 2023. 152 (1) Subsection 22(2) of the Act is amended by striking out “and” at the end of paragraph (c), by adding “and” at the end of paragraph (d) and by adding the following after paragraph (d): (e) if the constituent entity is subject to covered taxes in the fiscal year that are applicable in respect of passive income of another constituent entity of the MNE group in which the constituent entity has an ownership interest, the portion of those covered taxes that is not allocated to the other constituent entity under paragraph 24(4)(a) because of paragraph 24(4)(c), or under paragraph 24(5)(a) because of paragraph 24(5)(b). (2) Subparagraph 22(3)(a)(ii) of the Act is replaced by the following: (ii) any portion of an addition to covered taxes, in respect of the constituent entity for the fiscal year under subsection (2) ( other than under paragraph (2)(e) ), that relates to the amount of income; (3) The portion of subsection 22(5) of the Act before paragraph (a) is replaced by the following: Adjusted covered taxes — no double counting (5) An amount must not be taken into account more than once in determining the adjusted covered taxes of (4) Subsections (1) to (3) apply to fiscal years of a qualifying MNE group that begin on or after December 31, 2023. 153 (1) The portion of subsection 24(3) of the Act before paragraph (a) is replaced by the following: Allocation — tax transparent entities (3) An amount in respect of covered taxes is allocated from a tax transparent entity to a constituent entity-owner, to the extent that (2) Subparagraphs 24(3)(b)(i) and (ii) of the Act are replaced by the following: (i) in respect of any portion of the net income or loss of the tax transparent entity that is included in computing the financial accounting income of the constituent entity-owner because of paragraph 17(6)(b), and (ii) either (A) recorded in the financial accounts of the tax transparent entity, or (B) allocated to the tax transparent entity under subsection (4) from another constituent entity-owner that holds its ownership interest in the tax transparent entity through the constituent entity-owner. (3) The portion of paragraph 24(4)(a) of the Act before subparagraph (i) is replaced by the following: (a) subject to paragraphs (b) and (c), an amount in respect of covered taxes arising in a fiscal year ( other than deferred tax expense arising in respect of covered taxes under a blended controlled foreign company tax regime ) is allocated from the constituent entity-owner to the controlled foreign company, if (4) The description of G in paragraph 24(4)(b) of the Act is replaced by the following: G is the specified jurisdictional effective tax rate of the controlled foreign company for the fiscal year in respect of the constituent entity-owner , as determined under subsection (4.1) , and (5) The description of C in paragraph 24(4)(b) of the Act is replaced by the following: C is the total of all amounts each of which is an amount that would be determined for B if all references in the description of B to “the controlled foreign company” and “the subsidiary jurisdiction” were read as references to “an entity in which the constituent entity-owner holds, directly or indirectly , an ownership interest” and “the jurisdiction where the entity is located”, respectively; and (6) The portion of paragraph 24(4)(c) of the Act before the formula is replaced by the following: (c) if the covered taxes, in respect of which an amount would, in the absence of this paragraph, be allocated from the constituent entity-owner to the controlled foreign company under paragraph (a), are applicable in whole or in part in respect of passive income of the controlled foreign company, the amount allocated under paragraph (a) in respect of the particular portion of the covered taxes that are applicable in respect of the passive income must not exceed the amount determined by the formula (7) The description of B in paragraph 24(4)(c) of the Act is replaced by the following: B is the top-up percentage of the MNE group for the subsidiary jurisdiction, determined without regard to the particular portion of the covered taxes . (8) Subsection 24(5) of the Act is replaced by the following: Specified jurisdictional effective tax rate (4.1) The specified jurisdictional effective tax rate of a particular entity located in a particular jurisdiction for a fiscal year, in respect of another entity (referred to in this subsection as the “parent entity”) that is a constituent entity of an MNE group, that holds — directly or indirectly — an ownership interest in the particular entity, and that has a share of the particular entity’s income attributed to it under a blended controlled foreign company tax regime of the jurisdiction in which the parent entity is located, is (a) if the particular entity is a constituent entity of, or joint venture entity in respect of, the MNE group (referred to in this subsection as an “in-scope entity”), and neither its top-up amount for the fiscal year nor the top-up percentage that is applied in computing that top-up amount is deemed to be nil under any provision of this Act, the rate that would be the effective tax rate determined under this Act and that would be applied in computing the particular entity’s top-up amount for the fiscal year if the jurisdictional adjusted covered taxes of the MNE group for the particular jurisdiction were (i) calculated without reference to any covered taxes imposed under a controlled foreign company tax regime for the fiscal year, and (ii) increased by the total of all amounts each of which is an amount of tax payable (A) under the qualified domestic minimum top-up tax of the particular jurisdiction for the fiscal year in respect of the particular entity, or any other in-scope entity of the MNE group whose equivalent of the domestic top-up amount under the qualified domestic minimum top-up tax is computed applying the same effective tax rate as is used to compute the domestic top-up amount equivalent of the particular entity, and (B) in respect of which the blended controlled foreign company tax regime allows a foreign tax credit on the same terms as any creditable covered tax; (b) if the particular entity is an in-scope entity of the MNE group, and either its top-up amount or the top-up percentage that is applied in computing its top-up amount is deemed to be nil under a provision of this Act for the fiscal year, (i) in cases where the top-up amount of the particular entity is deemed to be nil under section 47, the rate that is or would be, if it were required to be determined, the simplified effective tax rate under subsection 47(5) in respect of the particular entity, (ii) in cases where the top-up amount of the particular entity is deemed to be nil under section 44, the rate that would be the effective tax rate, determined under the particular jurisdiction’s qualified domestic minimum top-up tax, that is applied in computing the equivalent of the domestic top-up amount of the particular entity under that qualified domestic minimum top-up tax if all tax amounts that satisfy the following conditions were included in determining that effective tax rate: (A) the tax amount is payable under the qualified domestic minimum top-up tax for the fiscal year in respect of the particular entity, or any other in-scope entity of the MNE group whose domestic top-up amount equivalent is computed applying the same effective tax rate as is used to compute the domestic top-up amount equivalent of the particular entity, and (B) the blended controlled foreign company tax regime allows a foreign tax credit for the tax amount on the same terms as any creditable covered tax, and (iii) in cases where the top-up amount of the particular entity or the top-up percentage that is applied in computing its top-up amount is deemed to be nil under any provision of this Act other than section 44 or 47, the rate that would be the simplified effective tax rate determined under subsection 47(5) in respect of the particular entity if that rate were required to be determined and the references in the definition profit (loss) before income tax in subsection 47(1) to “qualified country-by-country report” and “country-by-country report” were read as references to “qualified financial statements”; or (c) if the particular entity is not an in-scope entity of the MNE group, (i) in cases where the top-up amounts of all the in-scope entities of the MNE group located in the particular jurisdiction for the fiscal year are computed applying the same effective tax rate, that rate, (ii) in cases where the top-up amounts of one or more in-scope entities of the MNE group located in the particular jurisdiction for the fiscal year are computed applying an effective tax rate that is different from the effective tax rate applied in computing the top-up amount of any other of those in-scope entities, the effective tax rate that is applied in computing the top-up amounts of the subgroup of those in-scope entities in respect of which the parent entity has the greatest aggregate amount of income attributed to it under the blended controlled foreign company tax regime, and (iii) in any other case, the rate that would be the effective tax rate of the MNE group for the particular jurisdiction for the fiscal year if (A) all of the entities located in the particular jurisdiction in which the parent entity holds — directly or indirectly — an ownership interest, and in respect of which the parent entity has income attributed to it under the blended controlled foreign company tax regime, were deemed to be standard constituent entities, (B) the effective tax rate were computed using the aggregate income and taxes recorded in the financial accounts of those entities instead of net GloBE income and jurisdictional adjusted covered taxes, respectively, and (C) the amount determined for B in paragraph 29(1)(b) were deemed to be nil. Allocation — hybrid and flow-through entities (5) The following rules apply for the purposes of allocating amounts in respect of covered taxes from a constituent entity-owner to a constituent entity (referred to in this subsection as the “ relevant entity”) of an MNE group that is a hybrid entity in relation to the constituent entity-owner or that is a flow-through entity to which financial accounting income is allocated because paragraph 17(6)(c) applies in respect of the constituent entity-owner’s ownership interest in the flow-through entity : (a) subject to paragraph (b), an amount in respect of covered taxes recorded in the financial accounts of the constituent entity-owner for a fiscal year is allocated from the constituent entity-owner to the relevant entity to the extent the covered taxes are in respect of income of the relevant entity; and (b) if the covered taxes are, in whole or in part, in respect of passive income of the relevant entity, the amount to be allocated from the constituent entity-owner to the relevant entity under paragraph (a), in respect of the particular portion of the covered taxes that are in respect of the relevant entity’s passive income, must not exceed the amount determined by the formula A × B where A is the amount of the relevant entity’s passive income that is included in computing the covered taxes of the constituent entity-owner under the fiscal transparency rule in the jurisdiction where the constituent entity-owner is located, and B is the top-up percentage of the MNE group for the jurisdiction where the relevant entity is located, determined without regard to the particular portion of the covered taxes. (9) Section 24 of the Act is amended by adding the following after subsection (6): Election — deferred tax expense exclusion (7) Despite any other provision of this Act, if the filing constituent entity of an MNE group elects in respect of a jurisdiction, the following rules apply: (a) any deferred tax expense in respect of covered taxes that would, in the absence of this subsection, be available for allocation from a constituent entity of the MNE group located in the jurisdiction to another entity or a permanent establishment under subsection (1), (4), (5) or (6) in a fiscal year for which the election is in effect, shall be deemed to be nil; and (b) the election is a five-year election. (10) Subsections (1) to (9) apply to fiscal years of a qualifying MNE group that begin on or after December 31, 2023. 154 (1) The description of A in subsection 25(1) of the Act is replaced by the following: A is the total of all amounts each of which is — in respect of a deferred tax expense , in respect of covered taxes, recorded in the constituent entity’s financial accounts or allocated to it under subsection 24(1), (4), (5) or (6) for the fiscal year — an amount equal to (a) in cases where the tax rate applicable in determining the deferred tax expense exceeds the minimum rate, the amount that would be the deferred tax expense (subject to the exclusions under subsection (2)), if the applicable tax rate were the minimum rate, and (b) in any other case, the deferred tax expense (subject to the exclusions under subsection (2)); (2) Paragraph (b) of the description of B in subsection 25(1) of the Act is replaced by the following: (b) the recaptured portion of a deferred tax liability or aggregation of deferred tax liabilities determined for a preceding fiscal year that reverses or is considered to have reversed in the year; and (3) The portion of paragraph 25(4)(b) of the Act before subparagraph (i) is replaced by the following: (b) reverse, in any fiscal year (referred to in this paragraph as a “recharacterization year”) in which a recharacterization of income (referred to in this paragraph as the “recharacterized income”) described in paragraph ( c ) of the definition substitute loss carry-forward recapture amount in subsection 2(1) occurs, in an amount equal to the tax credits used by the constituent entity solely as a result of the recharacterization of income in the recharacterization year, to the extent that (4) The portion of subsection 25(6) of the Act before paragraph (a) is replaced by the following: Recaptured deferred tax liability (6) For the purpose of applying subsection 31(1) in a fiscal year (referred to in this subsection as the “current fiscal year”), the adjusted covered taxes of a constituent entity for a fiscal year (referred to in this subsection as the “adjustment fiscal year”) that is the fifth fiscal year preceding the current fiscal year are to be reduced to the extent of all or the portion of any deferred tax liability or aggregation of deferred tax liabilities that is (5) Paragraph 25(6)(b) of the Act is replaced by the following: (b) not reversed (or not considered to have been reversed ) in any of the five fiscal years following the adjustment fiscal year; and (6) Section 25 of the Act is amended by adding the following after subsection (6): Unclaimed accruals — election (7) The filing constituent entity of an MNE group may elect to not include any increases in the amount of a deferred tax liability, or aggregation of deferred tax liabilities, in determining the total deferred tax adjustment amount of a constituent entity of the MNE group for the fiscal year in which the election is made and any subsequent year prior to the revocation year of the election, and the election is a five-year election. GloBE deferred tax assets and deferred tax liabilities (8) If, due to any provision of this Part that is applicable in computing the GloBE income or loss of a constituent entity for a fiscal year, the carrying value (referred to in this subsection as the “GloBE carrying value”) of an asset or liability differs from the carrying value (referred to in this section as the “accounting carrying value”) recorded in the financial accounts of the constituent entity, in applying this section for the fiscal year, the deferred tax asset or liability, and the deferred tax expense, recorded in the financial accounts of the constituent entity at any time are deemed to be the deferred tax asset or liability (referred to in this section as the “GloBE deferred tax asset” or “GloBE deferred tax liability”, respectively) and deferred tax expense that would be so recorded at that time, in accordance with the accounting standard used in computing the constituent entity’s financial accounting income, if they were determined by reference to the GloBE carrying value of the asset or liability, adjusted in accordance with the following rules (referred to in this section as the “adjusted GloBE carrying value”): (a) the GloBE carrying value is to be adjusted for capitalized expenditures, amortization and depreciation; and (b) in determining the GloBE carrying value of an asset, no impairments or reversals of impairment losses in respect of the asset are to be taken into account. Conditions for application of subsection (10) (9) Subsection (10) applies in respect of an asset if (a) the asset is subject to an impairment or an impairment loss in respect of the asset is reversed; and (b) the accounting carrying value of the asset after the impairment or before the reversal (referred to in subsection (10) as the “impaired accounting carrying value”) is less than the adjusted GloBE carrying value of the asset. Adjustments for impairments or reversals (10) Despite paragraph (8)(b), if this subsection applies in respect of an asset, in applying this section, any GloBE deferred tax asset or GloBE deferred tax liability and deferred tax expense otherwise determined in accordance with subsection (8) are to be adjusted on the basis that the adjusted GloBE carrying value were, in accordance with the accounting standard used in computing the constituent entity’s financial accounting income, (a) in the case of an impairment, reduced to match the impaired accounting carrying value; and (b) in the case of a reversal of an impairment loss, increased to an amount equal to the lesser of (i) the asset’s adjusted GloBE carrying value, and (ii) the asset’s accounting carrying value after the reversal. (7) Subsections (1) to (6) apply to fiscal years of a qualifying MNE group that begin on or after December 31, 2023. 155 (1) Paragraph (a) of the definition flow-through tax benefits in subsection 28(1) of the Act is replaced by the following: (a) the tax benefit, in respect of a tax credit (other than a qualified refundable tax credit), received by the owner in respect of the ownership interest for the fiscal year; or (2) Paragraph (a) of the definition other flow-through amounts in subsection 28(1) of the Act is replaced by the following: (a) the tax benefits of qualified refundable tax credits; (3) Paragraph (b) of the definition qualified flow-through ownership interest in subsection 28(1) of the Act is replaced by the following: (b) at the time the ownership interest was acquired by the owner, the total return to be received by the owner (including distributions — other than distributions by the particular tax transparent entity out of its proceeds from the transfer of tax credits other than qualified refundable tax credits — the tax benefits of tax losses and the tax benefits of qualified refundable tax credits received in respect of the ownership interest, but excluding the tax benefits of tax credits other than qualified refundable tax credits) from its investment in the ownership interest could not reasonably have been expected to be greater than or equal to the investment amount of the owner in respect of the ownership interest. ( titre de participation intermédiaire admissible ) (4) Subsections (1) to (3) apply to fiscal years of a qualifying MNE group that begin on or after December 31, 2023. 156 (1) Subparagraph (i) of the description of C in paragraph 31(1)(b) of the Act is replaced by the following: (i) the disposition recapture ratio, if the adjustment is an adjustment to jurisdictional adjusted covered taxes under subsection 37(5), and (2) Subsection (1) applies to fiscal years of a qualifying MNE group that begin on or after December 31, 2023. 157 (1) The portion of subparagraph 32(5)(b)(ii) of the Act before clause (A) is replaced by the following: (ii) if all or any portion of the net income or loss of the constituent entity is allocated to one or more of its constituent entity-owners (each referred to in this subparagraph as a “relevant owner”) under paragraph 17(6)(b) for the fiscal year, (2) Subsection (1) applies to fiscal years of a qualifying MNE group that begin on or after December 31, 2023. 158 (1) The portion of paragraph 35(1)(a) of the Act before subparagraph (i) is replaced by the following: (a) all references in Divisions 2 and 3, Subdivisions A to E, G and H of this Division and Divisions 5 to 7 to (2) Paragraph 35(1)(d) of the Act is replaced by the following: (d) for the purposes of this subsection, any other modifications were made to Part 1 and Divisions 2 and 3, this Division, Divisions 5 to 7 and Subdivision A of Division 9 of this Part as the context requires. (3) Subsections (1) and (2) apply to fiscal years of a qualifying MNE group that begin on or after December 31, 2023. 159 (1) The description of A in the definition montant des impôts concernés ajustés de l’entité d’investissement in subsection 36(1) of the French version of the Act is replaced by the following: A représente le montant des impôts concernés ajustés de l’entité de sous-groupe d’investissement pour l’année financière; (2) Subsection (1) applies to fiscal years of a qualifying MNE group that begin on or after December 31, 2023. 160 (1) Section 38 of the Act is amended by adding the following after subsection (1): Pre-GloBE transition year transactions (1.1) If a transaction occurs in a particular fiscal year preceding the GloBE transition year and, had this Act applied to the particular fiscal year, subsection (1) would have applied in respect of the transaction, this Act is to be applied as though paragraph (1)(c) applied in respect of the transaction unless (a) the transaction occurs before December 1, 2021; and (b) it is not reasonably practicable to determine the financial accounting income of the transferred entity (within the meaning assigned by subsection (1)) on the basis of the historical carrying value referred to in paragraph (1)(c). (2) Subsection (1) applies to fiscal years of a qualifying MNE group that begin on or after December 31, 2023. 161 (1) Paragraph 44(c) of the Act is replaced by the following: (c) the filing constituent entity of the MNE group is permitted to elect, in accordance with annex A, chapter 3 of the GloBE Commentary , the qualified domestic minimum top-up tax safe harbour for the fiscal year in respect of the particular entity; and (2) Subsection (1) applies to fiscal years of a qualifying MNE group that begin on or after December 31, 2023. 162 (1) The Act is amended by adding the following after section 46: Side-by-side safe harbour 46. 1 The top-up amount of each constituent entity of, and each joint venture entity in respect of, an MNE group is deemed to be nil for a fiscal year if (a) the ultimate parent entity of the MNE group is located in a jurisdiction that has a qualified side-by-side regime in respect of which the side-by-side safe harbour is applicable for the year, as determined by the Inclusive Framework and published on the OECD’s website; and (b) the filing constituent entity of the MNE group elects the side-by-side safe harbour for the year. Ultimate parent entity safe harbour 46. 2 The top-up amount of each constituent entity of, and each joint venture entity in respect of, an MNE group that is located in the jurisdiction in which the ultimate parent entity of the MNE group is located is deemed to be nil for the purpose of computing the total UTPR top-up amount (as defined in section 49.5) of the MNE group for a fiscal year if (a) that jurisdiction has a qualified ultimate parent entity regime in respect of which the ultimate parent entity safe harbour is applicable for the year, as determined by the Inclusive Framework and published on the OECD’s website; and (b) the filing constituent entity of the MNE group elects the ultimate parent entity safe harbour for the year. (2) Subsection (1) applies to fiscal years of a qualifying MNE group that begin on or after January 1, 2026. 163 (1) The definition qualifying income tax expense in subsection 47(1) of the Act is amended by striking out “and” at the end of paragraph (a), by adding “and” at the end of paragraph (b) and by adding the following after paragraph (b): (c) any amount of deferred tax expense that is not taken into account because of the application of the rules in subsection 48(2.2) or (2.3). ( charges d’impôts admissibles ) (2) The portion of subsection 47(2) of the Act before paragraph (b) is replaced by the following: Election — transitional CbCR safe harbour (2) If the filing constituent entity of an MNE group elects the transitional country-by-country reporting safe harbour, in respect of the MNE group , for a jurisdiction for a particular fiscal year, the top-up amount of each standard constituent entity of the MNE group that is located in the jurisdiction for the particular fiscal year is deemed to be nil if (a) the particular fiscal year begins before January 1, 2028 and ends before July 1, 2029 ; (3) Paragraph 47(2)(c) of the Act is replaced by the following: (c) the election has been made in respect of the MNE group for the jurisdiction for each preceding fiscal year in which a standard constituent entity of the MNE group that is located in the jurisdiction is subject to a qualified IIR, qualified UTPR or qualified domestic minimum top-up tax; (4) Paragraph 47(2)(g) of the Act is replaced by the following: (g) any payment received or receivable by a particular standard constituent entity located in the jurisdiction for the fiscal year from another constituent entity of the MNE group that is treated as income in the qualified financial statements of the particular constituent entity for the fiscal year and as an expense in the qualified financial statements of the other constituent entity for the fiscal year is included, for the purposes of applying the transitional safe harbour, in the total revenues and profit (loss) before income tax of the MNE group for the jurisdiction where the particular standard constituent entity is located for the fiscal year. (5) Paragraph 47(7)(b) of the Act is replaced by the following: (b) references to “MNE group” are to be read as references to “joint venture group” other than in the expression “filing constituent entity of an MNE group” and in paragraph (2)(d) and subsection (8); (6) Subsections (1) to (5) apply to fiscal years of a qualifying MNE group that begin on or after December 31, 2023. 164 (1) The Act is amended by adding the following after section 47: Election — transitional UTPR safe harbour 47.1 (1) If the filing constituent entity of an MNE group elects the transitional UTPR safe harbour for the jurisdiction where the ultimate parent entity of the MNE group is located (referred to in this subsection as the “UPE jurisdiction”) for a fiscal year, the top-up amount of each constituent entity of, and each joint venture entity in respect of, the MNE group that is located in the UPE jurisdiction for the year is deemed to be nil for the purpose of computing the total UTPR top-up amount (as defined in section 49.5) of the MNE group for the fiscal year, if (a) the corporate income tax rate of the UPE jurisdiction for the fiscal year is equal to or greater than 20%; and (b) the fiscal year (i) begins before January 1, 2026 and ends before December 31, 2026, and (ii) is not longer than 12 months. Corporate income tax rate test (2) For the purposes of paragraph (1)(a), (a) the corporate income tax rate of a jurisdiction is the nominal statutory tax rate generally imposed by the jurisdiction on qualifying MNE groups on a comprehensive measure of income; and (b) if one or more subnational jurisdictions within the jurisdiction also impose a corporate income tax, subnational tax rates may be taken into account in determining the rate under paragraph (a) if those taxes are structured so that in the case of each subnational jurisdiction within the jurisdiction, the combined nominal statutory tax rate generally applicable to qualifying MNE groups on a comprehensive measure of income is equal to or greater than 20%. (2) Subsection (1) applies to fiscal years of a qualifying MNE group that begin on or after December 31, 2025. 165 (1) The portion of subsection 48(1) of the Act before subparagraph (a)(i) is replaced by the following: Transition — deferred tax assets and liabilities 48 (1) Subject to subsections (2), (2.2), (2.3) , (3), (5) and (5.1) , in determining the total deferred tax adjustment amount of a constituent entity of an MNE group that is located in a jurisdiction for the GloBE transition year of the MNE group in respect of the jurisdiction and each subsequent fiscal year in which the constituent entity is included in the MNE group, (a) each deferred tax asset and deferred tax liability ( other than a deferred tax asset or deferred tax liability arising in respect of the application of a blended controlled foreign company tax regime ) that is reflected in the constituent entity’s financial accounts at the beginning of the GloBE transition year is to be taken into account to the extent of (2) Subsection 48(2) of the Act is replaced by the following: Excluded deferred tax assets (2) In applying subsection (1), (a) a deferred tax asset that is reflected in a constituent entity’s financial accounts at the beginning of the GloBE transition year of its MNE group in respect of the jurisdiction in which the constituent entity is located must not be taken into account in determining the constituent entity’s total deferred tax adjustment amount if the deferred tax asset arises (i) as a result of a transaction (which includes any agreement, ruling, decree, grant or similar arrangement with a general government or any change to such an arrangement ) that occurs on or after December 1, 2021, and (ii) in respect of (A) an amount that would not be taken into account in computing the constituent entity’s GloBE income or loss for the GloBE transition year if the amount arose in the GloBE transition year, or (B) an amount that (I) is not included in the constituent entity’s income or profits in respect of which an entity is subject to an income or profits tax imposed by the government of the jurisdiction, and (II) would be included in computing the constituent entity’s GloBE income or loss for the GloBE transition year if the amount arose in the GloBE transition year; (b) for greater certainty, a deferred tax asset must not be taken into account in determining a constituent entity’s total deferred tax adjustment amount to the extent that the deferred tax asset is attributable to (i) a tax credit or other tax relief a specific entitlement to which arises under an agreement, ruling, decree, grant or similar arrangement with a general government if that arrangement is concluded, or any change to such an arrangement is made, on or after December 1, 2021, unless no critical aspect of the tax credit or other tax relief relies on the exercise of discretion by the general government, (ii) an election or choice that is made or changed on or after December 1, 2021 and that results in a change to the treatment of a transaction in determining the constituent entity’s taxable income for a taxation year in respect of which the tax authority has made an assessment, or a tax return has been filed, before the election or choice is made or changed, or (iii) differences between the accounting carrying values and tax bases of assets or liabilities if (A) those tax bases were established under a corporate income tax regime of any jurisdiction that was enacted on or after December 1, 2021, and (B) the jurisdiction did not have a corporate income tax regime immediately prior to the enactment of the regime referred to in clause (A); and (c) paragraph (a) is deemed to apply to any deferred tax asset to the extent that the deferred tax asset is attributable to a loss — under a corporate income tax regime of a jurisdiction enacted on or after December 1, 2021 where the jurisdiction did not have a corporate income tax regime immediately prior to the enactment of the regime — for a fiscal year of the constituent entity preceding the five fiscal years that immediately precede the fiscal year that includes the date of such enactment. Definition of pre-GloBE arrangement deferred tax asset (2.1) In this section, pre-GloBE arrangement deferred tax asset , of a constituent entity of an MNE group located in a jurisdiction, means a deferred tax asset that is reflected in the constituent entity’s financial accounts to the extent that the deferred tax asset is attributable to (a) a tax credit or other tax relief described in subparagraph (2)(b)(i), unless it arises under an arrangement with a general government that is concluded or amended after November 18, 2024; (b) an election or choice described in subparagraph (2)(b)(ii) that is not made or changed after November 18, 2024; or (c) any differences described in subparagraph (2)(b)(iii), unless the corporate income tax regime described in clause (2)(b)(iii)(A) is enacted after the earlier of November 18, 2024 and the first day of the GloBE transition year of the MNE group in respect of the jurisdiction. Grace period rules — pre-GloBE arrangements (2.2) Subject to subsection (2.3), the following rules apply to the deferred tax expense, for a particular fiscal year, in respect of the reversal of a pre-GloBE arrangement deferred tax asset of a constituent entity of an MNE group located in a jurisdiction: (a) in applying subsection (1), despite subsection (2) but subject to paragraphs (b) and (c), the deferred tax expense may be taken into account in determining the constituent entity’s total deferred tax adjustment amount for the particular fiscal year; (b) the amount of the deferred tax expense that may be taken into account in determining the constituent entity’s total deferred tax adjustment amount or qualifying income tax expense (as defined in subsection 47(1)) for the particular fiscal year must not exceed the amount determined by the formula [(A ÷ B × C) × 0.2] − D where A is the amount of the deferred tax asset reflected in the constituent entity’s financial accounts at the later of (i) the time when it is originally reflected in the accounts, and (ii) the beginning of the first fiscal year that the MNE group is a qualifying MNE group, B is the greater of (i) the minimum rate, and (ii) the tax rate applicable in determining the amount referred to in the description of A, C is the minimum rate, and D is the total of all amounts each of which is an amount of deferred tax expense in respect of the deferred tax asset taken into account in determining the constituent entity’s total deferred tax adjustment amount or qualifying income tax expense (as defined in subsection 47(1)) for a fiscal year preceding the particular fiscal year; and (c) no amount of the deferred tax expense may be taken into account in determining the constituent entity’s total deferred tax adjustment amount or qualifying income tax expense (as defined in subsection 47(1)) if the particular fiscal year (i) in the case of a deferred tax asset that satisfies the condition in subparagraph (2.1)(a) or (b), begins after December 31, 2025 or ends after June 30, 2027, and (ii) in the case of a deferred tax asset that satisfies the condition in subparagraph (2.1)(c), begins before December 31, 2024 or after December 30, 2026 or ends after June 30, 2028. Grace period rules — anti-acceleration (2.3) Any amount of deferred tax expense in respect of the reversal of a pre-GloBE arrangement deferred tax asset of a constituent entity that may, in the absence of this subsection, be taken into account in determining the constituent entity’s total deferred tax adjustment amount or qualifying income tax expense (as defined in subsection 47(1)) for a fiscal year shall not be taken into account for those purposes to the extent that it arises from any of the following occurrences taking place after November 18, 2024: (a) a change in (i) law, (ii) the accounting methodology used, or (iii) the terms of an agreement, ruling, decree, grant or similar arrangement with a general government; or (b) the making or changing of an election or choice. (3) The portion of subparagraph 48(5)(b)(ii) of the Act before clause (B) is replaced by the following: (ii) the transferee is deemed to have a deferred tax asset reflected in its financial accounts in an amount equal to the total of the following amounts, adjusted for any capitalized expenditure, amortization and depreciation in respect of the asset that are referred to in subparagraphs (a)(i) and (ii): (A) the portion of the current tax expense for a fiscal year of the transferor ( or, if a group taxation regime applies , the portion of the current tax expense for the fiscal year of the entity that pays taxes in respect of the transferor under that regime ) in respect of covered taxes that is demonstrated to have resulted from the transfer, (4) Subparagraph 48(5)(b)(ii) of the Act is amended by striking out “and” at the end of clause (A), by adding “and” at the end of clause (B) and by adding the following after clause (B): (C) the amount of any deferred tax asset (other than a pre-GloBE arrangement deferred tax asset) of the transferor (or, if a group taxation regime applies, the entity that pays taxes in respect of the transferor under that regime) that (I) would have been taken into account under subsection (1), and (II) is demonstrated to have been reversed or not created solely because any gain arising on the transfer was included in the domestic taxable income of the transferor. (5) Section 48 of the Act is amended by adding the following after subsection (5): No adjusted covered taxes reduction (5.1) The creation of a deferred tax asset under subparagraph (5)(b)(ii) does not reduce the adjusted covered taxes of any constituent entity for any fiscal year. (6) The description of B in paragraph 48(9)(b) of the Act is replaced by the following: B is the amount of any deferred tax asset ( other than a pre-GloBE arrangement deferred tax asset ) in respect of a tax loss of the transferor that (i) would have been taken into account under subsection (1), and (ii) is demonstrated to have been reversed or to not have been created solely because any gain arising from the transfer of the asset was included in the taxable income of the transferor, (7) Subsections (1) to (6) apply to fiscal years of a qualifying MNE group that begin on or after December 31, 2023. 166 (1) The Act is amended by adding the following after section 49: PART 2. 1 UTPR Definitions 49. 1 The following definitions apply in this Part. Canadian share of the total UTPR top-up amount  has the same meaning as in section 49.4. ( part canadienne du montant complémentaire RPII total ) Canadian UTPR percentage  has the same meaning as in subsection 49.7(1). ( pourcentage RPII canadien ) Canadian UTPR top-up amount  has the same meaning as in section 49.3. ( montant complémentaire RPII canadien ) initial phase of international activity year , of an MNE group, means a fiscal year (a) throughout which the constituent entities (other than investment entities, insurance investment entities and flow-through entities that are stateless constituent entities) of the MNE group are located in no more than six different jurisdictions; and (b) for which the total of all amounts, each of which is the net book value, for the fiscal year, of a tangible asset (other than any tangible asset, of a flow-through entity, that is physically located in the reference jurisdiction) of a constituent entity (other than an investment entity or insurance investment entity and including, for greater certainty, a flow-through entity) of the MNE group that is located in a jurisdiction other than the reference jurisdiction, does not exceed €50 million. ( année de la phase de démarrage des activités internationales ) net book value , for a fiscal year, of a tangible asset, means the average of the beginning and end values of the tangible asset for the fiscal year after taking into account accumulated depreciation, depletion and impairment, as recorded in the financial statements. ( valeur nette comptable ) number of employees , of a constituent entity of an MNE group for a fiscal year, means the total number of employees of the constituent entity, on a full-time equivalent basis for the fiscal year, determined in accordance with the following rules: (a) an independent contractor participating in the ordinary operating activities of the constituent entity is an employee; (b) an employee is an employee of a permanent establishment or main entity to the extent that the payroll costs of the employee are included in the separate financial accounts of the permanent establishment (as adjusted in accordance with clause 17(1)(b)(ii)(B) or subsection 17(2)) or main entity, as the case may be; (c) to the extent that an employee is, under paragraph (b), an employee of a permanent establishment, the employee must not be taken into account in determining the number of employees of the main entity of the permanent establishment; and (d) if a constituent entity was not a member of the MNE group throughout the fiscal year, the number of full-time equivalent employees of the constituent entity for the fiscal year is to be determined on a just and reasonable basis. ( nombre d’employés ) reference jurisdiction , of an MNE group, means a particular jurisdiction if (a) at least one constituent entity of the MNE group is located in the particular jurisdiction in the first fiscal year that any constituent entity of, or joint venture entity in respect of, the MNE group is subject to a qualified UTPR or Part 3; and (b) there is no other jurisdiction for which the total of the net book values, for that fiscal year, of tangible assets held by constituent entities of the MNE group that are located in that other jurisdiction is greater than the total of the net book values, for that fiscal year, of tangible assets held by constituent entities of the MNE group that are located in the particular jurisdiction. ( juridiction de référence ) tangible assets , en of a constituent entity for a fiscal year, means the tangible assets of the constituent entity for the fiscal year determined in accordance with the following rules: (a) for greater certainty, tangible assets do not include cash or cash equivalents, intangibles or financial assets; (b) the tangible assets of a constituent entity that is a permanent establishment are only those that are reflected in the separate financial accounts of the permanent establishment as adjusted in accordance with clause 17(1)(b)(ii)(B) or subsection 17(2) (referred to in this definition as “permanent establishment assets”); and (c) the tangible assets of a constituent entity that is a main entity in respect of one or more permanent establishments do not include any permanent establishment assets of those permanent establishments. ( actifs corporels ) total UTPR top-up amount  has the same meaning as in section 49.5. ( montant complémentaire RPII total ) UTPR top-up amount  has the same meaning as in section 49.6. ( montant complémentaire RPII ) UTPR 49.2 (1) A person must pay a tax under this Part in respect of a constituent entity of an MNE group for a fiscal year in an amount equal to the Canadian UTPR top-up amount of the constituent entity for the fiscal year, if (a) the constituent entity is located in Canada for the fiscal year; (b) the MNE group is a qualifying MNE group for the fiscal year; and (c) either (i) the person is the constituent entity, or (ii) both of the following conditions are met: (A) the constituent entity is not a person, (B) the person would, under the relevant assumptions, include in its income for the purposes of Part I of the Income Tax Act income of the constituent entity for the fiscal year. Relevant assumptions (2) For the purposes of clause (1)(c)(ii)(B), the relevant assumptions are that (a) the constituent entity referred to in that clause has income for the fiscal year that would be included in computing its income for the purposes of Part I of the Income Tax Act if it were a person resident in Canada; and (b) the person referred to in that clause is resident in Canada for the purposes of the Income Tax Act . Definition of Canadian UTPR top-up amount 49. 3 Canadian UTPR top-up amount , for a fiscal year, of a constituent entity (other than a securitization entity) of an MNE group located in Canada means the amount determined by the formula A × (B + C) where A is the Canadian share of the total UTPR top-up amount of the MNE group for the fiscal year; B is the percentage determined by the formula 50% × D ÷ E where D is the number of employees of the constituent entity for the fiscal year, and E is the total of all amounts, each of which is the number of employees of a constituent entity (other than a securitization entity) of the MNE group located in Canada for the fiscal year; and C is the percentage determined by the formula 50% × F ÷ G where F is the net book value of tangible assets of the constituent entity for the fiscal year, and G is the total of all amounts, each of which is the net book value of tangible assets of a constituent entity (other than a securitization entity) of the MNE group located in Canada for the fiscal year. Definition of Canadian share of the total UTPR top-up amount 49. 4 Canadian share of the total UTPR top-up amount , of an MNE group for a fiscal year, means the amount determined by the formula A × B where A is the total UTPR top-up amount of the MNE group for the fiscal year; and B is the Canadian UTPR percentage of the MNE group for the fiscal year. Definition of total UTPR top-up amount 49.5 total UTPR top-up amount , of an MNE group for a fiscal year, means the total of all amounts, each of which is the UTPR top-up amount of a constituent entity of the MNE group for the fiscal year. Definition of UTPR top-up amount 49. 6 UTPR top-up amount , of a constituent entity of an MNE group for the fiscal year, means (a) nil, if (i) the constituent entity is the ultimate parent entity of the MNE group and it is subject to a qualified IIR in the jurisdiction where it is located, or (ii) all of the ultimate parent entity’s ownership interests in the constituent entity are held, directly or indirectly, by one or more relevant parent entities of the MNE group that are located in jurisdictions where the constituent entity is subject to a qualified IIR; and (b) in any other case, the amount determined by the formula A − B where A is (i) if the constituent entity is a joint venture entity in respect of the MNE group, the amount that would be the ultimate parent entity’s allocable share of the top-up amount of the joint venture entity for the fiscal year if the ultimate parent entity were a relevant parent entity of the MNE group for the fiscal year, and (ii) in any other case, the top-up amount of the constituent entity for the fiscal year, and B is the total of all amounts, each of which is an amount determined by the formula C − D where C is the allocable share, of the top-up amount of the constituent entity for the fiscal year, of a relevant parent entity that is located in a jurisdiction where the constituent entity is subject to a qualified IIR, and D is the total of all amounts, each of which is a portion of the top-up amount of the constituent entity for the fiscal year that is included in both the amount determined for C in respect of the relevant parent entity for the fiscal year and the allocable share, of the top-up amount of the constituent entity for the fiscal year, of another relevant parent entity — that is located in a jurisdiction where the constituent entity is subject to a qualified IIR — through which the relevant parent entity indirectly holds an ownership interest in the constituent entity. Definition of Canadian UTPR percentage 49.7 (1) Canadian UTPR percentage of an MNE group for a fiscal year means the percentage determined by the formula A + B where A is the percentage determined by the formula 50% × C ÷ D where C is the total of all amounts, each of which is the number of employees of a constituent entity, of the MNE group, located in Canada for the fiscal year, and D is the total of all amounts, each of which is the number of employees of a constituent entity, of the MNE group, that is located in a jurisdiction in which a qualified UTPR is in force for the fiscal year; and B is the percentage determined by the formula 50% × E ÷ F where E is the total of all amounts, each of which is the net book value of tangible assets of a constituent entity, of the MNE group, located in Canada for the fiscal year, and F is the total of all amounts, each of which is the net book value of tangible assets of a constituent entity, of the MNE group, located in a jurisdiction in which a qualified UTPR is in force for the fiscal year. Qualified UTPR — special rule (2) For the purposes of determining the Canadian UTPR percentage of an MNE group for a fiscal year, a jurisdiction is deemed not to have a qualified UTPR in force for the fiscal year if (a) under a provision, of the qualified UTPR of that jurisdiction for a preceding fiscal year, that is substantially similar to the definition Canadian share of the total UTPR top-up amount , an amount in respect of the total UTPR top-up amount of the MNE group for the preceding fiscal year was allocated to the jurisdiction in respect of the MNE group; (b) the top-up allocation has not yet resulted in an additional cash tax expense, for the constituent entities of the MNE group located in that jurisdiction, equal to the allocated amount; and (c) this subsection would not, in the absence of this paragraph, apply in respect of every jurisdiction, in which one or more constituent entities of the MNE group are located, that would otherwise have a qualified UTPR in force for the fiscal year. Employees and tangible assets — special rule 49. 8 In determining the number of employees and the tangible assets of a constituent entity of an MNE group for a fiscal year for the purposes of this Part, other than for the purposes of paragraph (b) of the definition initial phase of international activity year , (a) an investment entity or insurance investment entity is deemed to have no employees and no tangible assets; and (b) employees or tangible assets that would, in the absence of this paragraph, be employees or tangible assets, as the case may be, of a flow-through entity that is a stateless entity (and that are not employees or tangible assets, as the case may be, of a permanent establishment of the flow-through entity) (i) are deemed to be employees or tangible assets, as the case may be, of any constituent entities of the MNE group that are located in the jurisdiction in which the flow-through entity was created, or (ii) if there are no constituent entities described in subparagraph (i), are deemed not to be employees or tangible assets, as the case may be. Application — joint ventures 49.9 (1) For the purposes of this Part, other than the definitions initial phase of international activity year and Canadian UTPR top-up amount , any reference to a constituent entity of an MNE group includes a joint venture entity in respect of the MNE group. Joint ventures — exception (2) Despite subsection (1), a reference to a constituent entity of an MNE group in the definition Canadian UTPR top-up amount for a fiscal year includes a joint venture entity in respect of the MNE group if, for the fiscal year, (a) one or more joint venture entities in respect of the MNE group are located in Canada; and (b) no constituent entity of the MNE group other than a joint venture entity in respect of the MNE group is located in Canada. Initial phase of international activity — exclusion 49.91 (1) Despite any other provision of this Part, other than subsection (2), the total UTPR top-up amount of an MNE group for a fiscal year is deemed to be nil if (a) the fiscal year (i) begins on or before the day that is five years after the first day of the first fiscal year that a constituent entity of the MNE group is subject to a qualified UTPR, and (ii) is an initial phase of international activity year; and (b) all fiscal years preceding the fiscal year are initial phase of international activity years. Reference jurisdiction — special rule (2) If Canada is the reference jurisdiction of an MNE group, for a fiscal year for which the total UTPR top-up amount of the MNE group would, in the absence of this subsection, be deemed to be nil under subsection (1), (a) subsection (1) does not apply for the purpose of determining the MNE group’s total UTPR top-up amount for the fiscal year; (b) for the purpose of determining the total UTPR top-up amount of the MNE group for the fiscal year, the UTPR top-up amount of a constituent entity of the MNE group that is located in Canada for the fiscal year is deemed to be nil; and (c) despite any other provision of this Part, the Canadian UTPR percentage of the MNE group for the fiscal year is deemed to be 100%. (2) Subsection (1) applies to fiscal years of a qualifying MNE group that begin on or after December 31, 2025. 167 (1) The portion of subsection 51(1) of the Act before paragraph (a) is replaced by the following: Domestic minimum top-up tax 51 (1) A particular person must pay a tax under this Part in respect of a constituent entity ( other than a securitization entity ) of an MNE group for a fiscal year in an amount equal to the domestic top-up amount of the constituent entity for the fiscal year, if (2) Subsection (1) applies to fiscal years of a qualifying MNE group that begin on or after December 31, 2023. 168 (1) The portion of subsection 52(1) of the Act before paragraph (a) is replaced by the following: Definition of domestic top-up amount 52 (1) Subject to subsection 53(3), the domestic top-up amount , of a constituent entity ( other than a securitization entity ) of an MNE group that is located in Canada for a fiscal year, means the amount that would be the top-up amount of the constituent entity for the fiscal year determined under subsection 30(1), 34(2), 35(1) or 36(2) (as adjusted under any other applicable provision of Part 2), as the case may be, if that amount (and any amounts or results relevant to the determination of that amount) were required to be determined and (2) Paragraph 52(1)(e) of the Act is replaced by the following: (e) this Act were read without reference to section 44. (3) Paragraph 52(1)(e) of the Act, as enacted by subsection (2), is replaced by the following: (e) this Act were read without reference to sections 44 and 46.1. (4) Subsections (1) and (2) apply to fiscal years of a qualifying MNE group that begin on or after December 31, 2023. (5) Subsection (3) applies to fiscal years of a qualifying MNE group that begin on or after January 1, 2026. 169 (1) Subsections 53(1) and (2) of the Act are replaced by the following: Definition of initial phase of international activity year 53 (1) In this section, initial phase of international activity year has the same meaning as in section 49.1. (2) Subsection (1) applies to fiscal years of a qualifying MNE group that begin on or after December 31, 2025. 170 (1) Paragraph (b) of the definition designated filing entity in subsection 55(1) of the Act is replaced by the following: (b) is located in a jurisdiction in the fiscal year that has a qualified IIR, a qualified UTPR or a qualified domestic minimum top-up tax that has qualified domestic minimum top-up tax safe harbour status in effect for the fiscal year. ( entité déclarante désignée ) (2) Subsection (1) applies to fiscal years of a qualifying MNE group that begin on or after December 31, 2023. 171 (1) Section 61 of the Act is amended by adding the following after subsection (1): Part 2.1 return (1.1) A person that is liable to pay tax under Part 2.1 for a fiscal year must file in the prescribed form and manner with the Minister, on or before the GIR due date, a return for the fiscal year containing an estimate of the tax payable. (2) Subsection 61(3) of the Act is replaced by the following: Canadian filing entity (3) If more than one person, in respect of an MNE group, is required to file a return under subsection (1) to (2) for a fiscal year, one of those persons that is resident in Canada may file a return on behalf of all the persons that would, in the absence of subsection (4), be required to file a return for the fiscal year, if the person is appointed, with the consent of the person, as the Canadian filing entity in the return. (3) Paragraph 61(4)(a) of the Act is replaced by the following: (a) the Canadian filing entity must file the return — on behalf of all persons that are required to file returns under any of subsections (1) to (2) in respect of the MNE group for the fiscal year — on or before the GIR due date for the fiscal year; and (4) Subsections (1) to (3) apply to fiscal years of a qualifying MNE group that begin on or after December 31, 2025. 172 (1) Subsection 66(1) of the Act is replaced by the following: Part 2 — joint and several, or solidary, liability 66 (1) A particular constituent entity ( other than a securitization entity) that is located in Canada is, in respect of tax and other amounts payable under this Part or Part 2 by another constituent entity of the same MNE group, jointly and severally, or solidarily, liable with the other constituent entity to pay those amounts and this Part applies to the particular constituent entity in respect of those amounts , with any modifications that the circumstances require. (2) Subsection 66(1) of the Act, as enacted by subsection (1), is replaced by the following: Parts 2 and 2.1 — joint and several, or solidary, liability 66 (1) A particular constituent entity (other than a securitization entity) that is located in Canada is, in respect of tax and other amounts payable under this Part, Part 2 or Part 2.1 by another constituent entity of the same MNE group, jointly and severally, or solidarily, liable with the other constituent entity to pay those amounts and this Part applies to the particular constituent entity in respect of those amounts, with any modifications that the circumstances require. (3) Subsections 66(2) and (3) of the Act are replaced by the following: Part 3 — joint and several, or solidary, liability (3) A particular constituent entity ( other than a securitization entity ) that is located in Canada is, in respect of tax and other amounts payable under this Part or Part 3 by another constituent entity of the same MNE group or a joint venture entity in respect of the same MNE group, jointly and severally, or solidarily, liable with the other constituent entity or joint venture entity to pay those amounts and this Part applies to the particular constituent entity in respect of those amounts, with any modifications that the circumstances require. (4) Subsection 66(4) of the Act is replaced by the following: Parts 2.1 and 3 — joint and several, or solidary, liability of joint venture entities (4) A particular joint venture entity that is located in Canada is, in respect of tax and other amounts payable under this Part, Part 2.1 or Part 3 by another joint venture entity of the same joint venture group, jointly and severally, or solidarily, liable with the other joint venture entity to pay those amounts and this Part applies to the particular joint venture entity in respect of those amounts, with any modifications that the circumstances require. (5) Subsections (1) and (3) apply to fiscal years of a qualifying MNE group that begin on or after December 31, 2023. (6) Subsections (2) and (4) apply to fiscal years of a qualifying MNE group that begin on or after December 31, 2025. 173 (1) Paragraph 85(2)(b) of the Act is replaced by the following: (b) with the written consent of the person , to dispose of an appeal of the person or another person ; or (2) Subsection (1) applies to fiscal years of a qualifying MNE group that begin on or after December 31, 2023. R.S., c. A- 1 Access to Information Act 174 Schedule II to the Access to Information Act is amended by replacing the reference to “section 121” opposite the reference to “Global Minimum Tax Act” with a reference to “section 123”. R.S., c. I- 4 Income Tax Conventions Interpretation Act 175 (1) The Income Tax Conventions Interpretation Act is amended by adding the following after section 4.3: Application of the Global Minimum Tax Act 4. 4 Notwithstanding the provisions of a convention or the Act giving the convention the force of law in Canada, in applying the provisions of the convention, nothing prevents the application of the Global Minimum Tax Act , as amended from time to time, or obliges Canada to provide relief in any form for tax imposed under similar legislation in the other state. (2) Subsection (1) is deemed to have come into force on January 1, 2024. R.S., c. T- 2 Tax Court of Canada Act 176 Subparagraph 18.29(3)(a)(vi.01) of the Tax Court of Canada Act is replaced by the following: (vi.01) section 89 or 91 of the Global Minimum Tax Act , PART 3 Amendments to the Excise Tax Act , the Excise Act , the Excise Act, 2001 and Other Related Texts DIVISION 1 Excise Tax Act and Other Related Texts (GST/HST) R.S., c. E- 15 Excise Tax Act 177 (1) The definition bank in subsection 123(1) of the Excise Tax Act is replaced by the following: bank  means a bank or an authorized foreign bank , as those terms are defined in section 2 of the Bank Act , but does not include a credit union ; ( banque ) (2) Subsection 123(1) of the Act is amended by adding the following in alphabetical order: Lloyd’s association  means an association of persons formed on the plan known as Lloyd’s, whereby each member of the association participating in an insurance policy becomes liable for a stated, limited or proportionate part of the whole amount payable under the insurance policy; ( association Lloyd’s ) (3) Section 123 of the Act is amended by adding the following after subsection (4): Meaning of administration or enforcement of this Part (5) For greater certainty, a reference in this Part to administration or enforcement of this Part includes the collection of any amount payable or remittable under this Part and the administration of a listed international agreement or of a tax treaty (as defined in subsection 248(1) of the Income Tax Act ). (4) Subsection (1) is deemed to have come into force on December 19, 2012. (5) Subsection (2) is deemed to have come into force on August 10, 2022. 178 (1) Paragraph 149(5)(a) of the Act is amended by adding the following after subparagraph (iv.1): (iv.2) a first home savings account, (2) Subsection (1) applies in respect of any taxation year of a person that begins after August 12, 2024. 179 (1) The Act is amended by adding the following after section 149: Continuation of Lloyd’s association 149.1 (1) For the purposes of this Part, if a Lloyd’s association that is registered under Subdivision D of Division V would, in the absence of this subsection, be regarded as having ceased to exist, the Lloyd’s association is deemed not to have ceased to exist until the registration of the Lloyd’s association is cancelled. Change in membership (2) For the purposes of this Part, if the membership of a Lloyd’s association changes but the number assigned to the Lloyd’s association by, or under the authority of, the council constituted by section 3 of the Lloyd’s Act 1982 , c. 14 (United Kingdom) does not change as a result of that change in membership, the Lloyd’s association is deemed to continue as the same Lloyd’s association. Policies issued by Lloyd’s association (3) For the purposes of this Part, if the members of a Lloyd’s association participate in an insurance policy and each member is liable for a stated, limited or proportionate part of the whole amount payable under the insurance policy, the Lloyd’s association is deemed to be an insurer, to have issued the insurance policy and to be insuring any risk that is insured under the insurance policy. Reinsurance to close (4) If, under the terms of a particular agreement entered into by the members of a particular Lloyd’s association (referred to in this subsection as the “reinsured members”) and either the members of another Lloyd’s association (referred to in this subsection as the “reinsuring members”) or a particular person that is prescribed, the reinsuring members or the particular person, as the case may be, agree to discharge, procure the discharge of or indemnify the reinsured members against all of the known and unknown liabilities of the reinsured members arising out of all of the insurance policies issued by the particular Lloyd’s association that are allocated to a particular time period for accounting purposes (referred to in this subsection as the “covered policies”), the following rules apply: (a) for the purposes of this Part and throughout the time the particular agreement is in effect, the other Lloyd’s association or the particular person, as the case may be, is deemed to be an insurer, to have issued the covered policies and to be insuring any risk that is insured under the covered policies; and (b) the particular Lloyd’s association, the other Lloyd’s association and the reinsuring members or, as the case may be, the particular Lloyd’s association and the particular person are jointly and severally, or solidarily, liable for (i) the payment of any amount of tax under Division II or III, section 218, subsection 218.1(1) or Division IV.1 that becomes payable by the particular Lloyd’s association, but only to the extent that the amount can reasonably be considered to relate to the covered policies, (ii) the remittance of any amount of net tax for any reporting period of the particular Lloyd’s association, but only to the extent that the amount can reasonably be considered to relate to the covered policies, (iii) the payment of any amount of tax under section 218.01 or subsection 218.1(1.2) that is determined for a specified year (as defined in section 217) of the particular Lloyd’s association, but only to the extent that the amount can reasonably be considered to relate to the covered policies, and (iv) the payment or remittance of any amount for which a third Lloyd’s association and the particular Lloyd’s association are jointly and severally, or solidarily, liable as a result of the application of this paragraph in respect of another agreement that was entered into by the members of the third Lloyd’s association and the members of the particular Lloyd’s association prior to the entering into of the particular agreement and that is in respect of one or more of the covered policies, but only to the extent that the amount can reasonably be considered to relate to those covered policies. (2) Subsection (1) is deemed to have come into force on August 10, 2022. 180 (1) Paragraph (b) of the description of A in subsection 193(1) of the Act is replaced by the following: (b) whichever of the following amounts is applicable: (i) if subparagraph (ii) does not apply , the tax that is or would be, in the absence of section 167, payable in respect of the particular taxable supply, and (ii) if the registrant is a selected listed financial institution at the particular time, the amount determined by the formula (C + D) − E where C is the tax that is or would be, in the absence of section 167, payable in respect of the particular taxable supply, D is the total of all amounts, each of which is determined for a participating province by the formula F × G × (H ÷ I) where F is the tax under subsection 165(1) that is or would be, in the absence of section 167, payable in respect of the particular taxable supply, G is the registrant’s percentage for the participating province determined for the purposes of subsection 225.2(2) for the registrant’s taxation year that includes the particular time, H is the tax rate for the participating province, and I is the rate set out in subsection 165(1), and E is the tax under subsection 165(2) that is or would be, in the absence of section 167, payable in respect of the particular taxable supply, and (2) The description of C in paragraph 193(2.1)(b) of the Act is replaced by the following: C is (i) if subparagraph (ii) does not apply , the tax that is or would be, in the absence of section 167, payable in respect of the particular taxable supply, or (ii) if the public sector body is a selected listed financial institution at the particular time, the amount determined by the formula (D + E) − F where D is the tax that is or would be, in the absence of section 167, payable in respect of the particular taxable supply, E is the total of all amounts, each of which is determined for a participating province by the formula G × H × (I ÷ J) where G is the tax under subsection 165(1) that is or would be, in the absence of section 167, payable in respect of the particular taxable supply, H is the public sector body’s percentage for the participating province determined for the purposes of subsection 225.2(2) for the public sector body’s taxation year that includes the particular time, I is the tax rate for the participating province, and J is the rate set out in subsection 165(1), and F is the tax under subsection 165(2) that is or would be, in the absence of section 167, payable in respect of the particular taxable supply. (3) Subsections (1) and (2) apply in respect of any supply in respect of which tax becomes payable, or would become payable in the absence of section 167 of the Act, after August 14, 2025. 181 (1) Paragraph 205(4)(a) of the Act is replaced by the following:   (a) in acquiring a business or part of a business from a registrant, a financial institution that is a registrant is deemed under subsection 167( 1.1 ) to have acquired property for use exclusively in commercial activities of the institution, and (2) Subsection 205(5) of the Act is repealed. 182 (1) The definition Canadian activity in section 217 of the Act is replaced by the following: Canadian activity  of a person means an activity of the person carried on, engaged in or conducted in Canada or an activity of the person in respect of (a) an insurance policy that is issued by the person and that insures a risk in respect of property ordinarily situated in Canada or in respect of a person resident in Canada; (b) a debt that arises from (i) the deposit of funds in Canada, if the instrument issued as evidence of the deposit is a negotiable instrument, or (ii) the lending of money that is primarily for use in Canada; (c) a debt for all or part of the consideration for a supply of real property that is situated in Canada; (d) a debt for all or part of the consideration for a supply of personal property that is for use primarily in Canada; or (e) a debt for all or part of the consideration for a supply of a service that is to be performed primarily in Canada. ( activité au Canada ) (2) Subsection (1) is deemed to have come into force on August 13, 2024. It also applies in respect of the specified year of a person that includes August 13, 2024. 183 (1) Paragraph 217.1(6)(a) of the Act is replaced by the following: (a) the whole or part of property (in this section referred to as “attributable property”) or of a qualifying service (in this section referred to as an “attributable service”) to which the qualifying expenditure is attributable is deemed to have been acquired by the qualifying taxpayer at the time at which the outlay was made or the expense was incurred; (2) Paragraph 217.1(7)(a) of the Act is replaced by the following: (a) the whole or part of property (in this section referred to as “internal property”) or of a qualifying service (in this section referred to as an “internal service”) to which the outlay or expense is attributable is deemed to have been supplied to the qualifying taxpayer at the time the outlay was made or the expense was incurred; (3) Section 217.1 of the Act is amended by adding the following after subsection (8): Lloyd’s associations (9) For the purposes of this Division, the following rules apply in respect of a Lloyd’s association: (a) if the members of the Lloyd’s association are liable at any time in a specified year of the Lloyd’s association under an insurance policy that was issued by the Lloyd’s association and that insures a risk in respect of property ordinarily situated in Canada or in respect of a person resident in Canada, the Lloyd’s association is deemed to be a qualifying taxpayer throughout the specified year; (b) any activity of a member of the Lloyd’s association in respect of an insurance policy that was issued by the Lloyd’s association and that insures a risk in respect of property ordinarily situated in Canada or in respect of a person resident in Canada is deemed to be a Canadian activity of the Lloyd’s association; (c) if a member of the Lloyd’s association makes an outlay, or incurs an expense, outside Canada, if the outlay or expense may reasonably be regarded as being applicable to a Canadian activity of the Lloyd’s association and if a particular amount in respect of the outlay or expense would be qualifying consideration for a particular specified year of the member if the outlay or expense were applicable to a Canadian activity of the member and the member were a qualifying taxpayer throughout the particular specified year, the amount determined by the following formula is deemed to be qualifying consideration for the specified year of the Lloyd’s association in which the particular specified year ends: A − B where A is the particular amount, and B is the total of all amounts, each of which is an amount that is paid to the member as a reimbursement of the outlay or expense; (d) if an amount in respect of an outlay or expense is a particular amount of qualifying consideration for a specified year of the Lloyd’s association and an amount in respect of the same outlay or expense is another amount of qualifying consideration for a specified year of a member of the Lloyd’s association, the other amount of qualifying consideration is not to be included in determining tax under section 218.01 or subsection 218.1(1.2) for the specified year of the member; (e) if a member of the Lloyd’s association makes an outlay, or incurs an expense, outside Canada, if the outlay or expense may reasonably be regarded as being applicable to a Canadian activity of the Lloyd’s association and if a particular amount in respect of the outlay or expense would be an external charge for a particular specified year of the member if the outlay or expense were applicable to a Canadian activity of the member and the member were a qualifying taxpayer throughout the particular specified year, the amount determined by the following formula is deemed to be an external charge for the specified year of the Lloyd’s association in which the particular specified year ends: A − B where A is the particular amount, and B is the total of all amounts, each of which is an amount that is paid to the member as a reimbursement of the outlay or expense; (f) if an amount in respect of an outlay or expense is a particular external charge for a specified year of the Lloyd’s association and an amount in respect of the same outlay or expense is another external charge for a specified year of a member of the Lloyd’s association, the other external charge is not to be included in determining tax under section 218.01 or subsection 218.1(1.2) for the specified year of the member; (g) if a transaction or dealing between a particular qualifying establishment in Canada of a member of the Lloyd’s association and another qualifying establishment of the member in a country other than Canada may reasonably be regarded as being applicable to a Canadian activity of the Lloyd’s association and if a part of an amount in respect of the transaction or dealing would be an internal charge for a particular specified year of the member if the member were a qualifying taxpayer throughout the particular specified year, (i) the amount determined by the following formula is deemed to be an internal charge for the specified year of the Lloyd’s association in which the particular specified year ends: A − B where A is the part of the amount in respect of the transaction or dealing, and B is the total of all amounts, each of which is an amount that is paid to the member as a reimbursement of an outlay made, or expense incurred, outside Canada by the member that is included in the determination of the part of the amount in respect of the transaction or dealing, and (ii) for each outlay made, or expense incurred, outside Canada by the member that is included in the determination of the part of the amount in respect of the transaction or dealing, the outlay or expense is deemed not to have been made or incurred by the member and the amount determined by the following formula is deemed to be an outlay made, or expense incurred, outside Canada by the Lloyd’s association: A − B where A is the amount of the outlay or expense, and B is the total of all amounts, each of which is an amount that is paid to the member as a reimbursement of the outlay or expense; (h) if a part of an amount in respect of a transaction or dealing is a particular internal charge for a specified year of the Lloyd’s association and a part of the same amount is another internal charge for a specified year of a member of the Lloyd’s association, the other internal charge is not to be included in determining tax under section 218.01 or subsection 218.1(1.2) for the specified year of the member; (i) the Lloyd’s association is deemed not to deal at arm’s length with (i) the society incorporated by the Lloyd’s Act, 1871 , c. 21 (United Kingdom), by the name of Lloyd’s, and (ii) a person referred to in any of subparagraphs 14(2)(a)(ii) to (vii) of the Lloyd’s Act 1982 , c. 14 (United Kingdom), as amended from time to time; and (j) the members of the Lloyd’s association are deemed not to deal at arm’s length with the persons referred to in subparagraph (i)(i) or (ii) in respect of any supply, transaction or series of transactions that may reasonably be regarded as being applicable to an activity of the Lloyd’s association. Lloyd’s — credits and rebates (10) For the purposes of applying subsections (6) and (7) and determining an input tax credit under section 169 in respect of an amount of tax under section 218.01 or subsection 218.1(1.2) for a specified year of a Lloyd’s association, (a) if the amount is in respect of qualifying consideration that is deemed to be qualifying consideration for the specified year under paragraph (9)(c) or an external charge that is deemed to be an external charge for the specified year under paragraph (9)(e), the attributable property or attributable service to which the qualifying consideration or external charge relates is deemed to have been acquired by the Lloyd’s association; or (b) if the amount is in respect of an internal charge that is deemed to be an internal charge for the specified year under paragraph (9)(g), the internal property or internal service to which the internal charge relates is deemed to have been acquired by the Lloyd’s association. Lloyd’s — reinsurance to close (11) For the purposes of this Division, if an agreement that is described in subsection 149.1(4) is entered into by the members of a particular Lloyd’s association and either the members of another Lloyd’s association or a particular person that is prescribed for the purposes of that subsection and if the agreement is in respect of one or more insurance policies that insure a risk in respect of property ordinarily situated in Canada or in respect of a person resident in Canada, the following rules apply: (a) the other Lloyd’s association or the particular person, as the case may be, is deemed to be a qualifying taxpayer throughout every specified year of the other Lloyd’s association or of the particular person that includes a time at which the agreement is in effect; and (b) if the agreement is entered into by a particular person that is prescribed for the purposes of subsection 149.1(4), the particular person is deemed not to deal at arm’s length with (i) the society incorporated by the Lloyd’s Act, 1871 , c. 21 (United Kingdom), by the name of Lloyd’s, and (ii) a person referred to in any of subparagraphs 14(2)(a)(ii) to (vii) of the Lloyd’s Act 1982 , c. 14 (United Kingdom), as amended from time to time. Lloyd’s — members (12) Despite subsection (1), a person that is a member of a Lloyd’s association at any time in a specified year of the person and that is a person referred to in subparagraph 149(1)(a)(v) at any time in the specified year is not a qualifying taxpayer throughout the specified year if, throughout the specified year, the person (a) is not a person referred to in any of subparagraphs 149(1)(a)(i) to (iv) and (vi) to (xi); (b) is not a financial institution because of paragraph 149(1)(b) or (c); and (c) does not carry on an insurance business in Canada outside of any Lloyd’s association. (4) Subsections (1) and (2) are deemed to have come into force on August 10, 2022. (5) Subsection (3) applies in respect of any specified year of a person that ends after August 9, 2022, except that, in applying paragraph 217.1(9)(b) of the Act (as enacted by subsection (3)) in respect of any specified year of a person that ends after August 9, 2022 but before August 13, 2024, that paragraph is to be read as follows: (b) any Canadian activity of a member of the Lloyd’s association in respect of an insurance policy that was issued by the Lloyd’s association is deemed to be a Canadian activity of the Lloyd’s association; 184 (1) The portion of subsection 238(2.1) of the Act before paragraph (a) is replaced by the following: Filing by certain selected listed financial institutions (2.1) Despite paragraph (1)(b) and subsection (2), if a selected listed financial institution’s reporting period is a period other than a fiscal year , the financial institution must (2) Section 238 of the Act is amended by adding the following after subsection (3): Return — deceased individual (3.1) Despite subsections (1) to (3), if an individual dies on a particular day and if a return, interim return or final return for a reporting period of the individual or of the estate of the individual would, in the absence of this subsection, be required to be filed under any of subsections (1) to (3) on or before a day that is on or after the particular day and is less than six months after the particular day, the estate of the individual must file the return, interim return or final return, as the case may be, with the Minister on or before the last day of the sixth month after the month that includes the particular day. (3) Subsection (1) applies in respect of reporting periods that end after August 15, 2025. (4) Subsection (2) applies in respect of returns, interim returns and final returns that, in the absence of subsection 238(3.1) of the Act (as enacted by subsection (2)), would be required to be filed under any of subsections 238(1) to (3) of the Act, as amended by subsection (1), on or before a day that is after August 15, 2025. 185 (1) Subsection 273.2(3) of the Act is replaced by the following: Information return for reporting institution (3) Subject to subsection (3.1) , a reporting institution must file an information return with the Minister for a fiscal year of the reporting institution in prescribed form containing prescribed information on or before the day that is six months after the end of the fiscal year. Information return — deceased individual (3.1) If an individual dies on a particular day and an information return for a fiscal year of the individual would, in the absence of this subsection, be required to be filed under subsection (3) on or before a day that is on or after the particular day and is less than six months after the particular day, the estate of the individual must file the information return with the Minister on or before the last day of the sixth month after the month that includes the particular day. (2) Subsection (1) applies in respect of information returns that, in the absence of subsection 273.2(3.1) of the Act (as enacted by subsection (1)), would be required to be filed under subsection 273.2(3) of the Act on or before a day that is after August 15, 2025. 186 The portion of paragraph 288(1)(c) of the Act before subparagraph (i) is replaced by the following: (c) require any person to give the authorized person all reasonable assistance, to answer all proper questions relating to the administration or enforcement of this Part and 187 (1) The portion of subsection 289(1) of the Act before paragraph (a) is replaced by the following: Requirement to provide documents or information 289 (1) Despite any other provision of this Part, the Minister may, subject to subsection (2), for any purpose related to the administration or enforcement of this Part, by a notice served or sent in accordance with subsection (1.1), require that any person provide the Minister, within any reasonable time that is stipulated in the notice, with (2) Paragraph 289(3)(b) of the Act is replaced by the following: (b) the requirement is made to verify compliance by the person or persons in the group with any duty or obligation under this Part or is made for a purpose related to the administration of a listed international agreement or of a tax treaty (as defined in subsection 248(1) of the Income Tax Act ). 188 Subsection 292(1) of the Act is replaced by the following: Definition of foreign-based information or document 292 (1) In this section, foreign-based information or document means any information or document that is available or located outside Canada and that may be relevant to the administration or enforcement of this Part. SOR/91-26; SOR/2011-56, s. 4; SOR/2013-71, s. 17 Financial Services and Financial Institutions (GST/HST) Regulations 189 (1) Section 3 of the Financial Services and Financial Institutions (GST/HST) Regulations is replaced by the following: 3 Any service in relation to the clearing and settlement of cheques and other payment items under the national payments system of the Canadian Payments Association that is supplied by the Association or any of its members, other than a person that is entitled to be a member of the Association only because of the application of paragraph 4(2)(i) of the Canadian Payments Act , is prescribed for the purposes of paragraph (m) of the definition financial service in subsection 123(1) of the Act. (2) Subsection (1) is deemed to have come into force on September 25, 2025. SOR/91-33; SOR/99-173, s. 1 Amalgamations and Windings-Up Continuation (GST/HST) Regulations 190 (1) The schedule to the Amalgamations and Windings-Up Continuation (GST/HST) Regulations is amended by adding the following in numerical order: Subsections 177(1.1) and (1.11) (2) Subsection (1) is deemed to have come into force on August 4, 2023. SOR/2001- 171 Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations 191 (1) Paragraph (a) of the definition investment plan in subsection 1(1) of the Selected Listed Financial Institutions Attribution Method (GST/HST) Regulations is replaced by the following: (a) a trust governed by a registered retirement savings plan, a registered retirement income fund, a registered disability savings plan, a TFSA or a first home savings account ; or (2) Subsection 1(2) of the Regulations is replaced by the following: Further definitions — Income Tax Act (2) For the purposes of these Regulations, deferred profit sharing plan , employee benefit plan , employee life and health trust , employee trust , employees profit sharing plan , first home savings account , investment corporation , mortgage investment corporation , mutual fund corporation , mutual fund trust , non-resident-owned investment corporation , registered disability savings plan , registered education savings plan , registered retirement income fund , registered retirement savings plan , registered supplementary unemployment benefit plan , retirement compensation arrangement , TFSA and unit trust have the same meanings as in subsection 248(1) of the Income Tax Act . (3) Subsections (1) and (2) apply in respect of any reporting period of a person that ends after August 12, 2024. 192 (1) The portion of paragraph 3(a) of the Regulations before subparagraph (i) is replaced by the following: (a) if a financial institution is a bank or a credit union and if, at any time in a taxation year of the financial institution, the financial institution maintains a deposit or other similar account that is in the name of a person resident in a province or, at any time in that year, a loan that was made by the financial institution is outstanding and is secured by real property situated in a province or, if not secured by real property , is owing by a person resident in a province, the following rules apply: (2) Clauses 3(a)(ii)(A) and (B) of the Regulations are replaced by the following: (A) outstanding loans secured by real property situated in the province, (B) outstanding loans, not secured by real property , owing by persons resident in the province, and (3) Paragraphs 3(b) and (c) of the Regulations are replaced by the following: (b) if a financial institution ( other than a bank, credit union or investment plan ) is an insurer that, at any time in a taxation year of the financial institution, is insuring a risk in respect of property ordinarily situated in a province or in respect of a person resident in a province, the financial institution is deemed to have a permanent establishment in the province throughout the taxation year; (c) if a financial institution ( other than a bank, credit union, insurer or investment plan ) is a trust and loan corporation, a trust corporation or a loan corporation and if, at any time in a taxation year of the financial institution, the financial institution conducts business (other than business in respect of loans) in a province or, at any time in that year, a loan that was made by the financial institution is outstanding and is secured by real property situated in a province or, if not secured by real property , is owing by a person resident in a province, the financial institution is deemed to have a permanent establishment in the province throughout the taxation year; (4) The portion of paragraph 3(e) of the Regulations before subparagraph (i) is replaced by the following: (e) if a financial institution is a distributed investment plan (other than a master pension entity or a segregated fund of an insurer), the financial institution is deemed to have a permanent establishment in a particular province throughout a taxation year of the financial institution if, at any time in the taxation year, (5) Section 3 of the Regulations is amended by striking out “and” at the end of paragraph (e), by adding “and” at the end of paragraph (f) and by adding the following after paragraph (f): (g) if a financial institution is a master pension entity, the financial institution is deemed to have a permanent establishment in a province throughout a taxation year of the financial institution if, at any time in the taxation year, (i) a pension entity, master pension entity or private investment plan holds one or more units of the financial institution and has a permanent establishment in the province, or (ii) a person (other than a pension entity, master pension entity or private investment plan) holds one or more units of the financial institution and is resident in the province. (6) Subsections (1) to (3) apply in respect of any reporting period of a person that begins after August 9, 2022. (7) Subsections (4) and (5) apply in respect of any fiscal year of a person that ends after August 9, 2022. 193 (1) Paragraph 5(c) of the Regulations is replaced by the following: (c) if the person is a trust governed by a registered retirement savings plan, a registered retirement income fund, a registered education savings plan, a registered disability savings plan, a TFSA or a first home savings account , where the principal mailing address in Canada of the annuitant of the registered retirement savings plan or registered retirement income fund, of the subscriber of the registered education savings plan or of the holder of the registered disability savings plan, TFSA or first home savings account is located; (2) Subsection (1) applies in respect of any reporting period of a person that ends after August 12, 2024. 194 (1) Subsection 7(1) of the Regulations is replaced by the following: Definitions 7 (1) The following definitions apply in this section. qualifying master pension entity  means a master pension entity each unit of which is held by a pension entity, a private investment plan or another master pension entity that is a qualifying master pension entity. ( entité de gestion principale admissible ) unrecoverable tax amount  for a reporting period of a person means the amount determined by the formula A − B where A is the total of all amounts, each of which is (a) an amount that would be included in the total for A in subsection 225.2(2) of the Act for the reporting period if that subsection were read without reference to any adaptation made to it under Part 5, if the person were a selected listed financial institution throughout the reporting period and if no election under subsection 55(1) were in effect throughout the reporting period, (b) an amount of tax that the person would be deemed to have paid under any of subsections 172.1(5) to (7.1) and subparagraph 172.1(8.01)(b)(i) of the Act during the reporting period, if the person were a selected listed financial institution throughout the reporting period, or (c) an amount that the person would be required by paragraph 232.01(5)(b) or 232.02(4)(b) of the Act to include in its determination of net tax for the reporting period if the person were a selected listed financial institution throughout the reporting period; and B is the total of all amounts, each of which is (a) an amount that would be included in the total for B in subsection 225.2(2) of the Act for the reporting period if that subsection were read without reference to any adaptation made to it under Part 5, if the person were a selected listed financial institution throughout the reporting period and if no election under subsection 55(1) were in effect throughout the reporting period, (b) the federal component amount, within the meaning of section 232.01 of the Act, of a tax adjustment note issued under subsection 232.01(3) of the Act to the person during the reporting period, or (c) the federal component amount, within the meaning of section 232.02 of the Act, of a tax adjustment note issued under subsection 232.02(2) of the Act to the person during the reporting period. ( montant de taxe non recouvrable ) (2) The portion of subsection 7(2) of the Regulations before paragraph (a) is replaced by the following: Qualifying small investment plan (2) For the purposes of this Part, an investment plan (other than a distributed investment plan) is a qualifying small investment plan for a particular fiscal year of the investment plan if the investment plan is not a qualifying private investment plan for the particular fiscal year and if (3) Section 7 of the Regulations is amended by adding the following after subsection (2): Qualifying private investment plan (3) For the purposes of this Part, an investment plan is a qualifying private investment plan for a particular fiscal year that ends in a particular taxation year of the investment plan if it is a private investment plan, a pension entity of a pension plan or a master pension entity and if (a) in the case of a private investment plan or a pension entity, (i) if, in the absence of section 57, the particular fiscal year is the first fiscal year of the investment plan, (A) throughout the particular taxation year, less than 10% of the total number of plan members of the investment plan are resident in the participating provinces, and (B) throughout the particular fiscal year, the following amount is less than $100,000,000: (I) in the case of a pension entity of a pension plan, part of which is a defined contribution pension plan and the remaining part of which is a defined benefits pension plan, the amount determined by the formula A + B where A is the total value of the assets of the defined contribution pension plan that are reasonably attributable to the plan members of the investment plan resident in the participating provinces, and B is the total value of the actuarial liabilities of the defined benefits pension plan that are reasonably attributable to the plan members of the investment plan resident in the participating provinces, (II) in the case of a pension entity of a defined benefits pension plan, other than a pension entity described in subclause (I), the amount that is the total value of the actuarial liabilities of the pension plan that are reasonably attributable to the plan members of the investment plan resident in the participating provinces, and (III) in any other case, the amount that is the total value of the assets of the private investment plan or pension plan that are reasonably attributable to the plan members of the investment plan resident in the participating provinces, and (ii) in any other case, (A) throughout the taxation year of the investment plan that precedes the particular taxation year, less than 10% of the total number of plan members of the investment plan are resident in the participating provinces, and (B) throughout the fiscal year of the investment plan that precedes the particular fiscal year, the following amount is less than $100,000,000: (I) in the case of a pension entity of a pension plan, part of which is a defined contribution pension plan and the remaining part of which is a defined benefits pension plan, the amount determined by the formula C + D where C is the total value of the assets of the defined contribution pension plan that are reasonably attributable to the plan members of the investment plan resident in the participating provinces, and D is the total value of the actuarial liabilities of the defined benefits pension plan that are reasonably attributable to the plan members of the investment plan resident in the participating provinces, (II) in the case of a pension entity of a defined benefits pension plan, other than a pension entity described in subclause (I), the amount that is the total value of the actuarial liabilities of the pension plan that are reasonably attributable to the plan members of the investment plan resident in the participating provinces, and (III) in any other case, the amount that is the total value of the assets of the private investment plan or pension plan that are reasonably attributable to the plan members of the investment plan resident in the participating provinces; and (b) in the case of a master pension entity, (i) if, in the absence of section 57, the particular fiscal year is the first fiscal year of the investment plan, throughout the particular fiscal year (A) the investment plan is a qualifying master pension entity, (B) the total participating provinces unit value of the investment plan is less than $100,000,000, and (C) the participating provinces member percentage of the investment plan is less than 10%, and (ii) in any other case, throughout the fiscal year of the investment plan preceding the particular fiscal year (A) the investment plan is a qualifying master pension entity, (B) the total participating provinces unit value of the investment plan is less than $100,000,000, and (C) the participating provinces member percentage of the investment plan is less than 10%. Total participating provinces unit value and percentage (4) For the purposes of paragraph (3)(b), (a) the total participating provinces unit value of a particular qualifying master pension entity at any time is equal to the total of all amounts, each of which is determined as follows for a pension entity of a pension plan, a private investment plan or another qualifying master pension entity that holds one or more units of the particular qualifying master pension entity: (i) in the case of a pension entity or a private investment plan, the amount determined by the formula (A ÷ B) × C where A is (A) in the case of a pension entity of a pension plan, part of which is a defined contribution pension plan and the remaining part of which is a defined benefits pension plan, the amount determined by the formula D + E where D is the total value at that time of the assets of the defined contribution pension plan that are reasonably attributable to the plan members of the pension entity resident in the participating provinces, and E is the total value at that time of the actuarial liabilities of the defined benefits pension plan that are reasonably attributable to the plan members of the pension entity resident in the participating provinces, (B) in the case of a pension entity of a defined benefits pension plan, other than a pension entity described in clause (A), the amount that is the total value at that time of the actuarial liabilities of the pension plan that are reasonably attributable to the plan members of the pension entity resident in the participating provinces, and (C) in any other case, the amount that is the total value at that time of the assets of the pension plan or private investment plan that are reasonably attributable to the plan members of the pension entity or private investment plan resident in the participating provinces, B is (A) in the case of a pension entity of a pension plan, part of which is a defined contribution pension plan and the remaining part of which is a defined benefits pension plan, the amount determined by the formula F + G where F is the total value at that time of the assets of the defined contribution pension plan, and G is the total value at that time of the actuarial liabilities of the defined benefits pension plan, (B) in the case of a pension entity of a defined benefits pension plan, other than a pension entity described in clause (A), the amount that is the total value at that time of the actuarial liabilities of the pension plan, and (C) in any other case, the amount that is the total value at that time of the assets of the pension plan or private investment plan, and C is the total value at that time of the units of the particular qualifying master pension entity that are held by the pension entity or private investment plan, and (ii) in the case of another qualifying master pension entity, the amount that is the total participating provinces unit value of the other qualifying master pension entity at that time, as determined in accordance with this paragraph; and (b) the participating provinces member percentage of a particular qualifying master pension entity at any time is equal to the amount, expressed as a percentage, determined by the formula A ÷ B where A is equal to the total of all amounts, each of which is determined for a pension entity, a private investment plan or another qualifying master pension entity that holds one or more units of the particular qualifying master pension entity by the formula C × D where C is (i) in the case of a pension entity or private investment plan, the amount determined by the formula E ÷ F where E is the total number of plan members of the pension entity or private investment plan that are resident in the participating provinces at that time, and F is the total number of plan members of the pension entity or private investment plan at that time, and (ii) in the case of another qualifying master pension entity, the participating provinces member percentage of the other qualifying master pension entity at that time as determined in accordance with this paragraph, and D is the total value at that time of the units of the particular qualifying master pension entity that are held by the pension entity, private investment plan or other qualifying master pension entity, as the case may be, and B is the total value at that time of the units of the particular qualifying master pension entity. (4) Subsections (1) to (3) apply in respect of any fiscal year of a person that ends after August 9, 2022. 195 (1) The portion of section 10 of the Regulations before paragraph (b) is replaced by the following: Exception — qualifying investment plans 10 Section 9 does not apply in respect of a reporting period in a particular fiscal year of a financial institution that is a qualifying small investment plan or a qualifying private investment plan for the particular fiscal year if (a) the financial institution was a qualifying small investment plan or a qualifying private investment plan for the fiscal year of the financial institution that precedes the particular fiscal year and was not a selected listed financial institution throughout that preceding fiscal year; (2) Subsection (1) applies in respect of any fiscal year of a person that ends after August 9, 2022. 196 (1) Section 13 of the Regulations is repealed. (2) Subsection (1) applies in respect of any fiscal year of a person that ends after August 9, 2022. 197 (1) Subsection 14(1) of the Regulations is replaced by the following: Election — prescribed financial institution 14 (1) If an investment plan is, or reasonably expects to be, a qualifying small investment plan or a qualifying private investment plan for a fiscal year of the investment plan and if no application by the investment plan under subsection 15(1) in respect of the fiscal year has been approved by the Minister, the investment plan may make an election to be a prescribed financial institution for the purpose of paragraph 225.2(1)(b) of the Act that is effective from the first day of the fiscal year. (2) Subsection 14(6) of the Regulations is replaced by the following: Effect of early revocation (6) If the Minister allows an investment plan to revoke an election made under subsection (1) on the first day of a fiscal year that begins less than three years after the election became effective and the investment plan is a qualifying small investment plan or a qualifying private investment plan for the fiscal year, section 9 does not apply in respect of any reporting period in the fiscal year. (3) Subsections (1) and (2) apply in respect of any fiscal year of a person that ends after August 9, 2022. 198 (1) Subsection 15(2) of the Regulations is replaced by the following: Authorization (2) On receipt of an application made by an investment plan under subsection (1) in respect of a particular fiscal year of the investment plan and the fiscal year of the investment plan following the particular fiscal year, the Minister must, within 90 days of that receipt, consider the application and, if it is reasonable, based on the information in the possession of the Minister, to expect that the investment plan will be a qualifying small investment plan or a qualifying private investment plan for each of those two fiscal years, approve the application or, in any other case, refuse the application, and must, within that time limit, notify the investment plan in writing of the decision. (2) Paragraphs 15(3)(a) and (b) of the Regulations are replaced by the following: (a) if the investment plan is a qualifying small investment plan or a qualifying private investment plan for the particular fiscal year, section 9 does not apply in respect of any reporting period in the particular fiscal year; and (b) if the investment plan is a qualifying small investment plan or a qualifying private investment plan for the following fiscal year, section 9 does not apply in respect of any reporting period in the following fiscal year. (3) Subsections (1) and (2) apply in respect of any fiscal year of a person that ends after August 9, 2022. 199 (1) The portion of the definition plan merger in subsection 16(1) of the Regulations before paragraph (b) is replaced by the following: plan merger  means the merger or combination of two or more predecessors to form one continuing plan, which may or may not be a predecessor, in such a manner that (a) if none of the predecessors was, immediately before the merger or combination, a series of a distributed investment plan and the continuing plan is not , immediately after the merger or combination, a series of a distributed investment plan , the continuing plan is a predecessor; (2) The definition plan merger in subsection 16(1) of the Regulations is amended by adding “and” at the end of paragraph (a), by striking out “and” at the end of paragraph (b) and by repealing paragraph (c). (3) Subsection 16(1) of the Regulations is amended by adding the following in alphabetical order: continuing plan , with respect to a merger or combination referred to in the definition plan merger , means (a) a trust, corporation or partnership that results from the merger or combination and that is, immediately after the merger or combination, a distributed investment plan; or (b) a series of a stratified investment plan if the series results from the merger or combination and the investment plan does not result from the merger or combination. ( régime continué ) predecessor , with respect to a merger or combination referred to in the definition plan merger , means (a) a trust, corporation or partnership that is participating in the merger or combination and that was, immediately before the merger or combination, a distributed investment plan; or (b) a series of a stratified investment plan if the series is participating in the merger or combination and the investment plan is not participating in the merger or combination. ( régime remplacé ) (4) Subsections (1) and (3) apply in respect of any reporting period of a person that begins after August 9, 2022. (5) Subsection (2) applies in respect of any reporting period of a person that ends after August 4, 2023. 200 (1) The portion of subsection 24(2) of the Regulations before the formula is replaced by the following: Determination of percentage (2) If a selected listed financial institution, other than a bank, credit union or investment plan , is an insurer, the financial institution’s percentage for a participating province and for a particular period in which it has a permanent establishment in that province is the amount, expressed as a percentage, determined by the formula (2) The portion of subsection 24(2) of the Regulations before the formula, as enacted by subsection (1), is replaced by the following: Determination of percentage (2) Subject to subsection (4), if a selected listed financial institution, other than a bank, credit union or investment plan, is an insurer, the financial institution’s percentage for a participating province and for a particular period in which it has a permanent establishment in that province is the amount, expressed as a percentage, determined by the formula (3) The description of B in subsection 24(2) of the Regulations is replaced by the following: B is the total of its net premiums for the particular period in respect of the insurance of risk in respect of property and of its net premiums for the particular period in respect of the insurance of risk in respect of persons, that are included in computing its income for the purposes of Part I of the Income Tax Act or that would be included in computing its income for the purposes of Part I of that Act if the financial institution were an insurance corporation. (4) Section 24 of the Regulations is amended by adding the following after subsection (3): Nil net premiums (4) If, in the absence of this subsection, subsection (2) would apply to determine a selected listed financial institution’s percentage for a participating province and for a particular period and if the amount determined for B in subsection (2) in respect of the financial institution for the particular period is zero, the financial institution’s percentage for the participating province and for the particular period is to be determined under subsection 23(2). (5) Subsection (1) applies in respect of any reporting period of a person that begins after August 9, 2022. (6) Subsections (2) and (4) apply in respect of any reporting period of a person that ends after August 12, 2024. (7) Subsection (3) applies in respect of any reporting period of a person that ends after August 4, 2023. 201 (1) Subsection 26(1) of the Regulations is replaced by the following: Determination of percentage 26 (1) If a selected listed financial institution, other than a bank, credit union, insurer or investment plan , is a trust and loan corporation, a trust corporation or a loan corporation, the financial institution’s percentage for a particular period and for a participating province in which the financial institution has a permanent establishment is the percentage that the gross revenue for the particular period of its permanent establishments in the participating province is of the total gross revenue for the particular period of its permanent establishments in Canada. (2) Paragraphs 26(2)(a) and (b) of the Regulations are replaced by the following: (a) loans secured by real property situated in the participating province; (b) loans, not secured by real property , made to persons residing in the participating province; (3) The portion of paragraph 26(2)(c) of the Regulations before subparagraph (i) is replaced by the following: (c) loans, other than loans secured by real property situated in a country other than Canada in which the financial institution has a permanent establishment, (4) Subsections (1) to (3) apply in respect of any reporting period of a person that begins after August 9, 2022. 202 (1) The Regulations are amended by adding the following after section 27: Apportionment by Type of Business Determination of percentage 27. 1 If any one of subsections 24(2), 25(1) and 26(1) applies to a selected listed financial institution during a part of a particular period of the financial institution and if another of those subsections, or none of those subsections, applies to the financial institution during another part of the particular period, the financial institution’s percentage for the particular period and for a participating province is, despite sections 23 to 27, equal to the total of (a) the financial institution’s percentage for the particular period and for the participating province, as determined under section 24, multiplied by the amount determined by the formula A ÷ B where A is the number of days in the particular period during which subsection 24(2) applies to the financial institution, and B is the number of days in the particular period, (b) the financial institution’s percentage for the particular period and for the participating province, as determined under section 25, multiplied by the amount determined by the formula C ÷ D where C is the number of days in the particular period during which subsection 25(1) applies to the financial institution, and D is the number of days in the particular period, (c) the financial institution’s percentage for the particular period and for the participating province, as determined under section 26, multiplied by the amount determined by the formula E ÷ F where E is the number of days in the particular period during which subsection 26(1) applies to the financial institution, and F is the number of days in the particular period, and (d) the financial institution’s percentage for the particular period and for the participating province, as determined under section 23 or 27, as applicable, multiplied by the amount determined by the formula G ÷ H where G is the number of days in the particular period during which none of subsections 24(2), 25(1) and 26(1) applies to the financial institution, and H is the number of days in the particular period. (2) Subsection (1) applies in respect of any reporting period of a person that begins after August 9, 2022. 203 (1) The portion of paragraph 28(d) of the Regulations before subparagraph (i) is replaced by the following: (d) if the particular person is not a selected listed financial institution and is either a qualifying small investment plan or a qualifying private investment plan for the purposes of Part 1, or if the particular person is not a selected listed financial institution by operation of section 11 or 12 , the amount that would, if the particular person were a selected listed financial institution, be the particular person’s percentage for the participating province and for the taxation year of the particular person in which the fiscal year that includes the following reporting period of the particular person ends: (2) Subsection (1) applies in respect of any reporting period of a person that ends after August 4, 2023. 204 (1) The portion of subsection 30(4) of the Regulations before paragraph (a) is replaced by the following: Plan mergers (4) Despite subsection (1), if on a particular day a plan merger between two or more predecessors occurs to form a particular stratified investment plan that includes a particular series that is neither an exchange-traded series nor a provincial series or occurs to form a particular series of a particular stratified investment plan that is neither an exchange-traded series nor a provincial series, if the particular investment plan is a selected listed financial institution and if no election under section 49 or 64 is in effect in respect of the particular series throughout the fiscal year of the particular investment plan (in this subsection referred to as the “transitional fiscal year”) that includes the particular day, the following rules apply: (2) Subparagraphs (ii) and (iii) of the description of A in paragraph 30(4)(a) of the Regulations are replaced by the following: (ii) if the particular predecessor is a non-stratified investment plan, (A) if an election under section 49 or 61 is in effect in respect of the particular predecessor immediately before the plan merger, the particular predecessor’s percentage for the participating province as of the last day on which that percentage is required to be determined for the purposes of subsection 225.2(2) of the Act, as adapted by these Regulations, before the plan merger, and (B) in any other case, the particular predecessor’s percentage for the participating province and for the last particular period of the particular predecessor ending before the plan merger, and (iii) if the particular predecessor is a series of a stratified investment plan, (A) if an election under section 49 or 64 is in effect in respect of the particular predecessor immediately before the plan merger, the stratified investment plan’s percentage for the particular predecessor and for the participating province as of the last day on which that percentage is required to be determined for the purposes of subsection 225.2(2) of the Act, as adapted by these Regulations, before the plan merger, and (B) in any other case, the stratified investment plan’s percentage for the particular predecessor, for the participating province and for the last particular period of the stratified investment plan ending before the plan merger, (3) Subsections (1) and (2) apply in respect of any reporting period of a person that begins after August 9, 2022. 205 (1) The portion of subsection 32(4) of the Regulations before paragraph (a) is replaced by the following: Plan mergers (4) Despite subsection (1), if on a particular day a plan merger between two or more predecessors occurs to form a particular non-stratified investment plan, other than an exchange-traded fund, that is a selected listed financial institution and no election under section 49 or 61 is in effect in respect of the particular investment plan throughout the fiscal year of the particular investment plan (in this subsection referred to as the “transitional fiscal year”) that includes the particular day, the following rules apply: (2) The portion of subparagraph (i) of the description of A in paragraph 32(4)(a) of the Regulations before the formula is replaced by the following: (i) if the particular predecessor is a stratified investment plan, the total of all amounts, each of which is determined by the following formula for a series of the particular predecessor (in this subparagraph referred to as a “predecessor series”), units of which were converted, by any means, into units of the particular investment plan : (3) The descriptions of A 2 and A 3 in paragraph 32(4)(a) of the Regulations are replaced by the following: A 2 is the total value immediately before the plan merger of the units of the predecessor series that were converted, by any means, into units of the particular investment plan by virtue of the plan merger, and A 3 is the total of all amounts, each of which is the total value immediately before the plan merger of the units of a series of the particular predecessor (including the predecessor series) that were converted, by any means, into units of the particular investment plan by virtue of the plan merger, (4) Subparagraphs (ii) and (iii) of the description of A in paragraph 32(4)(a) of the Regulations are replaced by the following: (ii) if the particular predecessor is a non-stratified investment plan, (A) if an election under section 49 or 61 is in effect in respect of the particular predecessor immediately before the plan merger, the particular predecessor’s percentage for the participating province as of the last day on which that percentage is required to be determined for the purposes of subsection 225.2(2) of the Act, as adapted by these Regulations, before the plan merger, and (B) in any other case, the particular predecessor’s percentage for the participating province and for the last particular period of the particular predecessor ending before the plan merger, and (iii) if the particular predecessor is a series of a stratified investment plan, (A) if an election under section 49 or 64 is in effect in respect of the particular predecessor immediately before the plan merger, the stratified investment plan’s percentage for the particular predecessor and for the participating province as of the last day on which that percentage is required to be determined for the purposes of subsection 225.2(2) of the Act, as adapted by these Regulations, before the plan merger, and (B) in any other case, the stratified investment plan’s percentage for the particular predecessor, for the participating province and for the last particular period of the stratified investment plan ending before the plan merger, (5) Subsections (1) to (4) apply in respect of any reporting period of a person that begins after August 9, 2022. 206 (1) The portion of subsection 33(3) of the Regulations before paragraph (a) is replaced by the following: Plan mergers (3) Despite subsection (1), if on a particular day a plan merger between two or more predecessors occurs to form a particular stratified investment plan that includes a particular series, other than a provincial series, that is an exchange-traded series or occurs to form a particular series, other than a provincial series , of a particular stratified investment plan that is an exchange-traded series and if the particular investment plan is a selected listed financial institution, the following rules apply: (2) Subparagraphs (ii) and (iii) of the description of A in paragraph 33(3)(a) of the Regulations are replaced by the following: (ii) if the particular predecessor is a non-stratified investment plan, (A) if an election under section 49 or 61 is in effect in respect of the particular predecessor immediately before the plan merger, the particular predecessor’s percentage for the participating province as of the last day on which that percentage is required to be determined for the purposes of subsection 225.2(2) of the Act, as adapted by these Regulations, before the plan merger, and (B) in any other case, the particular predecessor’s percentage for the participating province and for the last particular period of the particular predecessor ending before the plan merger, and (iii) if the particular predecessor is a series of a stratified investment plan, (A) if an election under section 49 or 64 is in effect in respect of the particular predecessor immediately before the plan merger, the stratified investment plan’s percentage for the particular predecessor and for the participating province as of the last day on which that percentage is required to be determined for the purposes of subsection 225.2(2) of the Act, as adapted by these Regulations, before the plan merger, and (B) in any other case, the stratified investment plan’s percentage for the particular predecessor, for the participating province and for the last particular period of the stratified investment plan ending before the plan merger, (3) Subsections (1) and (2) apply in respect of any reporting period of a person that begins after August 9, 2022. 207 (1) The portion of subsection 34(3) of the Regulations before paragraph (a) is replaced by the following: Plan mergers (3) Despite subsection (1), if on a particular day a plan merger between two or more predecessors occurs to form a particular non-stratified investment plan that is an exchange-traded fund and a selected listed financial institution, the following rules apply: (2) The portion of subparagraph (i) of the description of A in paragraph 34(3)(a) of the Regulations before the formula is replaced by the following: (i) if the particular predecessor is a stratified investment plan, the total of all amounts, each of which is determined by the following formula for a series of the particular predecessor (in this subparagraph referred to as a “predecessor series”), units of which were converted, by any means, into units of the particular investment plan : (3) The descriptions of A 2 and A 3 in paragraph 34(3)(a) of the Regulations are replaced by the following: A 2 is the total value immediately before the plan merger of the units of the predecessor series that were converted, by any means, into units of the particular investment plan by virtue of the plan merger, and A 3 is the total of all amounts, each of which is the total value immediately before the plan merger of the units of a series of the particular predecessor (including the predecessor series) that were converted, by any means, into units of the particular investment plan by virtue of the plan merger, (4) Subparagraphs (ii) and (iii) of the description of A in paragraph 34(3)(a) of the Regulations are replaced by the following: (ii) if the particular predecessor is a non-stratified investment plan, (A) if an election under section 49 or 61 is in effect in respect of the particular predecessor immediately before the plan merger, the particular predecessor’s percentage for the participating province as of the last day on which that percentage is required to be determined for the purposes of subsection 225.2(2) of the Act, as adapted by these Regulations, before the plan merger, and (B) in any other case, the particular predecessor’s percentage for the participating province and for the last particular period of the particular predecessor ending before the plan merger, and (iii) if the particular predecessor is a series of a stratified investment plan, (A) if an election under section 49 or 64 is in effect in respect of the particular predecessor immediately before the plan merger, the stratified investment plan’s percentage for the particular predecessor and for the participating province as of the last day on which that percentage is required to be determined for the purposes of subsection 225.2(2) of the Act, as adapted by these Regulations, before the plan merger, and (B) in any other case, the stratified investment plan’s percentage for the particular predecessor, for the participating province and for the last particular period of the stratified investment plan ending before the plan merger, (5) Subsections (1) to (4) apply in respect of any reporting period of a person that begins after August 9, 2022. 208 (1) Section 40 of the Regulations is amended by adding the following after paragraph (a): (a.1) any amount of tax that became payable, or that was paid without having become payable, by a surety — being a person acting as a surety under a performance bond in respect of a contract for the supply of construction services relating to real property situated in Canada — in respect of property or a service acquired, imported or brought into a participating province (i) exclusively and directly for consumption, use or supply in the course of carrying on, or of engaging another person to carry on, construction that is undertaken in full or partial satisfaction of the surety’s obligations under the performance bond, and (ii) otherwise than for use as capital property of the surety or in improving capital property of the surety; (2) Subsection (1) applies in respect of any amount of tax that becomes payable, or that is paid without having become payable, during a reporting period of a person that (a) ends after August 15, 2025; or (b) ends after October 8, 1998 and on or before August 15, 2025, unless the amount of tax is included by the person in determining the positive or negative amounts that the person is required to add, or may deduct, under subsection 225.2(2) of the Excise Tax Act in determining the net tax of the person for the reporting period. 209 (1) Paragraph (a) of the definition qualifying investor in subsection 52(1) of the Regulations is replaced by the following: (a) is neither a qualifying small investment plan nor a qualifying private investment plan for the purposes of Part 1 for the fiscal year of the person that includes September 30 of the calendar year; (2) Subsection (1) applies in respect of any fiscal year of a person that ends after August 9, 2022. 210 (1) Subparagraph 58(1)(a)(ii) of the Regulations is replaced by the following: (ii) the day preceding the day on which a plan merger of the investment plan and one or more other investment plans or series of investment plans first occurs; and (2) The portion of subsection 58(2) of the Regulations before paragraph (a) is replaced by the following: New series — attribution point (2) Despite the meaning of attribution point as set out in subsections 16(1) and 18(3), if units of a series of an investment plan are issued, distributed or offered for sale in a particular fiscal year that ends in a particular taxation year of the investment plan and, immediately before the issuance, distribution or offering for sale, no units of the series are issued and outstanding, the following rules apply for the purposes of this Part and Part 2: (3) Subparagraph 58(2)(a)(ii) of the Regulations is replaced by the following: (ii) the day preceding the day on which a plan merger of either the investment plan or the series and one or more other investment plans or series of investment plans first occurs; and (4) Subsections (1) to (3) apply in respect of any reporting period of a person that begins after August 9, 2022. 211 (1) Clause 59(a)(ii)(B) of the Regulations is replaced by the following: (B) the day preceding the day on which a plan merger of the investment plan and one or more other investment plans or series of investment plans first occurs; (2) Subsection (1) applies in respect of any reporting period of a person that begins after August 9, 2022. 212 (1) Clause 62(a)(ii)(B) of the Regulations is replaced by the following: (B) the day preceding the day on which a plan merger of either the investment plan or the series and one or more other investment plans or series of investment plans first occurs; (2) Subsection (1) applies in respect of any reporting period of a person that begins after August 9, 2022. 213 (1) Paragraph 65(a) of the Regulations is replaced by the following: (a) the occurrence of a plan merger to form an investment plan or a series of an investment plan is a prescribed circumstance; and (2) Subsection (1) applies in respect of any reporting period of a person that begins after August 9, 2022. 214 (1) The portion of section 66 of the Regulations before paragraph (a) is replaced by the following: Investment plan merger 66 If a plan merger occurs to form an investment plan or a series of an investment plan and if the investment plan is, immediately after the plan merger, a selected listed financial institution, the following rules apply: (2) Subsection (1) applies in respect of any reporting period of a person that begins after August 9, 2022. DIVISION 2 Excise Act , Excise Act, 2001 and Other Related Texts R.S., c. E- 14 Excise Act 215 Section 99 of the Excise Act is amended by adding the following after subsection (4): Waiving or reducing penalty (5) The Minister may, on or before the day that is 10 calendar years after the end of a period for which a return is required by this Act to be made by a person, or on application by the person on or before that day, waive or reduce any penalty payable by the person under subsection (4) in respect of the return. 216 Section 110.1 of the Act is amended by adding the following after subsection (2): Waiving or reducing penalty or interest (3) The Minister may, on or before the particular day that is 10 calendar years after the day an amount was required to be paid by a person under this Act, or on application by the person on or before the particular day, waive or reduce any penalty or interest on the amount payable by the person under subsection (1). 2002, c. 22 Excise Act, 2001 217 Paragraph (a) of the definition sale price in section 2 of the Excise Act, 2001 is replaced by the following: (a) the amount charged as the price for the cigars before an amount payable in respect of a tax under Part IX of the Excise Tax Act is added and before an amount of duty imposed on the cigars under section 43 is added , 218 Section 4 of the Act is replaced by the following: Meaning of administration or enforcement of this Act 4 For greater certainty, a reference in this Act to administration or enforcement of this Act includes the collection of any amount payable under this Act and the administration of a listed international agreement or of a tax treaty (as defined in subsection 248(1) of the Income Tax Act ). 219 The Act is amended by adding the following after section 6: Negative amounts 6. 1 Except as specifically otherwise provided, if an amount or a number is required under this Act to be determined or calculated by or in accordance with an algebraic formula and the amount or number when so determined or calculated would, in the absence of this section, be a negative amount or number, it is deemed to be zero. 220 (1) Subsection 158.25(2) of the Act is replaced by the following: Specified province — duty on cannabis taken for use (2) If a particular person is responsible for cannabis products at a particular time when the cannabis products are taken for use, the cannabis products are relieved of the duty, if any, imposed under subsection 158.2(1) and a duty in respect of a specified province is imposed, in addition to the duty imposed under subsection (1), on the cannabis products in prescribed circumstances in the amount determined in prescribed manner. (2) Subsection (1) is deemed to have come into force on August 12, 2024. 221 (1) Subsection 158.26(2) of the Act is replaced by the following: Specified province — duty on unaccounted cannabis (2) If a particular person that is responsible at a particular time for cannabis products cannot account for the cannabis products as being, at the particular time, in the possession of a cannabis licensee or in the possession of another person in accordance with subsection 158.11(3) or paragraph 158.11(5)(a), the cannabis products are relieved of the duty, if any, imposed under subsection 158.2(1) and a duty in respect of a specified province is imposed, in addition to the duty imposed under subsection (1), on the cannabis products in prescribed circumstances in the amount determined in prescribed manner. (2) Subsection (1) is deemed to have come into force on August 12, 2024. 222 (1) Paragraph 158.6(1)(a) of the Act is replaced by the following: (a) the vaping products are relieved of the duty imposed under section 158.57; and (2) Subsection 158.6(2) of the Act is replaced by the following: Specified vaping province — taken for use (2) If a particular person is responsible for vaping products at a particular time when the vaping products are taken for use, the vaping products are relieved of the duty, if any, imposed under section 158.58 and a duty in respect of a specified vaping province is imposed, in addition to the duty imposed under subsection (1), on the vaping products in prescribed circumstances in the amount determined in prescribed manner. (3) Subsections (1) and (2) are deemed to have come into force on August 12, 2024. 223 (1) Paragraph 158.61(1)(a) of the Act is replaced by the following: (a) the vaping products are relieved of the duty imposed under section 158.57; and (2) Subsection 158.61(2) of the Act is replaced by the following: Specified vaping province — unaccounted vaping products (2) If a particular person that is responsible at a particular time for vaping products cannot account for the vaping products as being, at the particular time, in the possession of a vaping product licensee or in the possession of another person in accordance with subsection 158.44(3), the vaping products are relieved of the duty, if any, imposed under section 158.58 and a duty in respect of a specified vaping province is imposed, in addition to the duty imposed under subsection (1), on the vaping products in prescribed circumstances in the amount determined in prescribed manner. (3) Subsections (1) and (2) are deemed to have come into force on August 12, 2024. 224 (1) The portion of subsection 208(1) of the Act before paragraph (a) is replaced by the following: Requirement to provide records or information 208 (1) Despite any other provision of this Act, the Minister may, subject to subsection (2), for any purpose related to the administration or enforcement of this Act, by a notice served or sent in accordance with subsection (1.1), require any person to provide the Minister, within any reasonable time that is stipulated in the notice, with (2) Paragraph 208(3)(b) of the Act is replaced by the following: (b) the requirement is made to verify compliance by the person or persons in the group with any duty or obligation under this Act or is made for a purpose related to the administration of a listed international agreement or of a tax treaty (as defined in subsection 248(1) of the Income Tax Act ). SOR/2003- 115 Regulations Respecting Excise Licences and Registrations 225 Paragraph 4(b) of the Regulations Respecting Excise Licences and Registrations is replaced by the following: (b) in the case of a spirits licence, a wine licence, a user’s licence , a vaping product licence or an excise warehouse licence (other than an excise warehouse licence authorizing a person to possess in their excise warehouse manufactured tobacco or cigars that are not stamped) , shall not exceed three years; or SOR/2003-288; 2018, c. 12, s. 108; 2022, c. 10, s. 116 Stamping and Marking of Tobacco, Cannabis and Vaping Products Regulations 226 (1) Paragraph 2(a) of the Stamping and Marking of Tobacco, Cannabis and Vaping Products Regulations is replaced by the following: (a) raw leaf tobacco is packaged in a prescribed package when it is packaged (i) in a package that contains no more than 500 grams of raw leaf tobacco, and (ii) in the smallest package — including any outer wrapper, package, box or other container — in which it is sold to the consumer; (2) Paragraph 2(c) of the French version of the Regulations is replaced by the following: c) dans le cas d’un produit du cannabis ou d’un produit de vapotage, le plus petit emballage, y compris l’enveloppe extérieure, l’emballage, la boîte ou autre contenant, dans lequel il est vendu au consommateur. (3) Subsection (1) comes into force on the first day of the month after the month in which this Act receives royal assent. 227 (1) Subsection 5(2) of the Regulations is amended by striking out “or” at the end of paragraph (c), by adding “or” at the end of paragraph (d) and by adding the following after paragraph (d): (e) 500 grams of packaged raw leaf tobacco. (2) Subsection (1) comes into force on the first day of the month after the month in which this Act receives royal assent. PART 4 Various Measures DIVISION 1 Legislation Related to Financial Institutions (Bearer Instruments) 1991, c. 45 Trust and Loan Companies Act 228 Section 36 of the Trust and Loan Companies Act is renumbered as subsection 36(1) and is amended by adding the following: Convertible documents (2) If a company, before it was continued under this Act, had issued a document in registered form that is convertible to bearer form and that evidences conversion privileges, options or rights to acquire a share, it shall not, if a holder of such a document exercises the conversion privilege attached, issue a document in bearer form that evidences conversion privileges, options or rights to acquire a share. 229 The Act is amended by adding the following after section 72: No evidence in bearer form 72.1 (1) Despite section 72, a company shall not issue, in bearer form, documents that evidence conversion privileges, options or rights to acquire a share of the company. Replacement (2) On the request of a holder of a document that evidences conversion privileges, options or rights to acquire a share of a company, that is in bearer form and that was issued before the day on which this section comes into force, the company shall issue in exchange to the holder, in registered form, a document that evidences the conversion privileges, options or rights. 230 Section 93 of the Act is replaced by the following: Fractional share 93 (1) A company may issue for each fractional share a certificate in registered form or a scrip certificate in registered form that entitles the holder to receive a certificate for a full share in exchange for scrip certificates equalling a full share. Replacement (2) On the request of a holder of a certificate for a fractional share or scrip certificate that is in bearer form and was issued before the day on which this subsection comes into force, a company shall issue in exchange to the holder, in registered form, a certificate for a fractional share or scrip certificate, as the case may be. 231 Section 102 of the Act is replaced by the following: Fungible securities 102 Unless otherwise agreed and subject to the provisions of this Act, of any other Act of Parliament, of any Act of the legislature of a province or of any regulation made under any of those Acts or to any applicable stock exchange rule, a person required to deliver securities may deliver any security of the specified issue. 1991, c. 46 Bank Act 232 Section 38 of the Bank Act is amended by adding the following after subsection (2): Convertible documents (3) If a bank, before it was continued under this Act, had issued a document in registered form that is convertible to bearer form and that evidences conversion privileges, options or rights to acquire a share, it shall not, if a holder of such a document exercises the conversion privilege attached, issue a document in bearer form that evidences conversion privileges, options or rights to acquire a share. 233 The Act is amended by adding the following after section 69: No evidence in bearer form 69.1 (1) Despite section 69, a bank shall not issue, in bearer form, documents that evidence conversion privileges, options or rights to acquire a share of the bank. Replacement (2) On the request of a holder of a document that evidences conversion privileges, options or rights to acquire a share of a bank, that is in bearer form and that was issued before the day on which this section comes into force, the bank shall issue in exchange to the holder, in registered form, a document that evidences the conversion privileges, options or rights. 234 Section 90 of the Act is replaced by the following: Fractional share 90 (1) A bank may issue for each fractional share a certificate in registered form or a scrip certificate in registered form that entitles the holder to receive a certificate for a full share in exchange for scrip certificates equalling a full share. Replacement (2) On the request of a holder of a certificate for a fractional share or scrip certificate that is in bearer form and was issued before the day on which this subsection comes into force, a bank shall issue in exchange to the holder, in registered form, a certificate for a fractional share or scrip certificate, as the case may be. 235 Section 99 of the Act is replaced by the following: Fungible securities 99 Unless otherwise agreed and subject to the provisions of this Act, of any other Act of Parliament, of any Act of the legislature of a province or of any regulation made under any of those Acts or to any applicable stock exchange rule, a person required to deliver securities may deliver any security of the specified issue. 236 The Act is amended by adding the following after section 713: No evidence in bearer form 713.1 (1) Despite section 713, a bank holding company shall not issue, in bearer form, documents that evidence conversion privileges, options or rights to acquire a share of the bank holding company. Replacement (2) On the request of a holder of a document that evidences conversion privileges, options or rights to acquire a share of a bank holding company, that is in bearer form and that was issued before the day on which this section comes into force, the bank holding company shall issue in exchange to the holder, in registered form, a document that evidences the conversion privileges, options or rights. 1991, c. 47 Insurance Companies Act 237 Section 37 of the Insurance Companies Act is renumbered as subsection 37(1) and is amended by adding the following: Convertible documents (2) If a company, before it was continued under this Act, had issued a document in registered form that is convertible to bearer form and that evidences conversion privileges, options or rights to acquire a share, it shall not, if a holder of such a document exercises the conversion privilege attached, issue a document in bearer form that evidences conversion privileges, options or rights to acquire a share. 238 The Act is amended by adding the following after section 73: No evidence in bearer form 73.1 (1) Despite section 73, a company shall not issue, in bearer form, documents that evidence conversion privileges, options or rights to acquire a share of the company. Replacement (2) On the request of a holder of a document that evidences conversion privileges, options or rights to acquire a share of a company, that is in bearer form and that was issued before the day on which this section comes into force, the company shall issue in exchange to the holder, in registered form, a document that evidences the conversion privileges, options or rights. 239 Section 94 of the Act is replaced by the following: Fractional share 94 (1) A company may issue for each fractional share a certificate in registered form or a scrip certificate in registered form that entitles the holder to receive a certificate for a full share in exchange for scrip certificates equalling a full share. Replacement (2) On the request of a holder of a certificate for a fractional share or scrip certificate, if the certificate is in bearer form and was issued before the day on which this subsection comes into force, a company shall issue in exchange to the holder, in registered form, a certificate for a fractional share or scrip certificate, as the case may be. 240 Section 103 of the Act is replaced by the following: Fungible securities 103 Unless otherwise agreed and subject to the provisions of this Act, of any other Act of Parliament, of any Act of the legislature of a province or of any regulation made under any of those Acts or to any applicable stock exchange rule, a person required to deliver securities may deliver any security of the specified issue. 241 The Act is amended by adding the following after section 752: No evidence in bearer form 752.1 (1) Despite section 752, an insurance holding company shall not issue, in bearer form, documents that evidence conversion privileges, options or rights to acquire a share of the insurance holding company. Replacement (2) On the request of a holder of a document that evidences conversion privileges, options or rights to acquire a share of an insurance holding company, that is in bearer form and that was issued before the day on which this section comes into force, the insurance holding company shall issue in exchange to the holder, in registered form, a document that evidences the conversion privileges, options or rights. DIVISION 2 Legislation Related to Financial Institutions (Immunity — Good Faith Actions) 1991, c. 45 Trust and Loan Companies Act 242 The Trust and Loan Companies Act is amended by adding the following after section 530: No Liability No liability 530. 1 No action lies against His Majesty in right of Canada, the Minister, the Commissioner, the Superintendent, any officer or employee of His Majesty in right of Canada or any person acting under the direction of the Minister, the Commissioner or the Superintendent for anything done or omitted to be done in good faith in the administration or discharge of any powers or duties that under this Act are intended or authorized to be executed or performed. 1991, c. 46 Bank Act 243 The Bank Act is amended by adding the following after section 977: No Liability No liability 977. 1 No action lies against His Majesty in right of Canada, the Minister, the Commissioner, the Superintendent, any officer or employee of His Majesty in right of Canada or any person acting under the direction of the Minister, the Commissioner or the Superintendent for anything done or omitted to be done in good faith in the administration or discharge of any powers or duties that under this Act are intended or authorized to be executed or performed. 1991, c. 47 Insurance Companies Act 244 The Insurance Companies Act is amended by adding the following after section 1020: No Liability No liability 1020. 1 No action lies against His Majesty in right of Canada, the Minister, the Commissioner, the Superintendent, any officer or employee of His Majesty in right of Canada or any person acting under the direction of the Minister, the Commissioner or the Superintendent for anything done or omitted to be done in good faith in the administration or discharge of any powers or duties that under this Act are intended or authorized to be executed or performed. DIVISION 3 1991, c. 46 Bank Act Amendment to the Act 245 The Bank Act is amended by adding the following after Part VIII: PART VIII. 1 Non-Discrimination — Deposit Products Definitions 463. 1 The following definitions apply in this Part. deposit product  includes a deposit-type instrument , a principal-protected note and a retail deposit account , as those terms are defined in subsection 627.01(1). ( produit de dépôt ) institution  has the same meaning as in subsection 627.01(1). ( institution ) Deposit products — banks 463.2 (1) A bank must not directly offer or sell in Canada a deposit product of another Canadian financial institution unless the bank does so in a non-discriminatory manner. Deposit products — authorized foreign banks (2) An authorized foreign bank must not directly offer or sell in Canada a deposit product of a Canadian financial institution unless the authorized foreign bank does so in a non-discriminatory manner. Deposit products — institutions 463. 3 An institution must not offer or sell one of its deposit products in Canada through any of its affiliates unless the affiliate offers or sells the deposit product in a non-discriminatory manner. Regulations 463. 4 The Minister may make regulations respecting what constitutes offering or selling a deposit product in a non-discriminatory manner for the purposes of section 463.2 or 463.3. Coming into Force Order in council 246 This Division comes into force on a day to be fixed by order of the Governor in Council. DIVISION 4 Public Contracts R.S., c. F- 11 Financial Administration Act 247 (1) The portion of subsection 41(1) of the Financial Administration Act before paragraph (a) is replaced by the following: Regulations respecting conditions under which contracts awarded 41 (1) The Governor in Council may make regulations with respect to the conditions under which contracts may be entered into by His Majesty or a Crown corporation and, despite any other Act of Parliament, (2) Paragraphs 41(1)(a) and (b) of the English version of the Act are replaced by the following: (a) may direct that no contract by the terms of which payments are required in excess of an amount that the Governor in Council may prescribe shall be entered into or have any force or effect unless entry into the contract has been approved by the Governor in Council or the Treasury Board; and (b) may make regulations with respect to the security to be given to and in the name of His Majesty to secure the due performance of contracts. (3) Subsection 41(2) of the Act is replaced by the following: Restriction — Canada Pension Plan Investment Board (2) The Governor in Council may only make regulations under subsection (1) with respect to the conditions under which contracts may be entered into by the Canada Pension Plan Investment Board if those contracts are covered by any provision of a trade agreement. 1996, c. 16 Department of Public Works and Government Services Act 248 Paragraph 22.1(3)(b) of the Department of Public Works and Government Services Act is replaced by the following: (b) review any complaint that is in respect of the award of a contract for the acquisition of materiel or services and that is prescribed by the regulations ; 249 Subsection 22.2(1) of the Act is replaced by the following: Person who may complain 22.2 (1) A person may file a complaint referred to in paragraph 22.1(3)(b) or (c) only if they meet any requirements prescribed by the regulations. 250 Paragraph 23.1(b) of the Act is replaced by the following: (b) the complaints referred to in paragraphs 22.1(3)(b) and (c), including the contracts and subject-matter that may be reviewed, the persons who may file complaints , any conditions that must be met before a complaint may be filed and the manner in which complaints must be filed; and R.S., c. N- 4 Related Amendment to the National Capital Act 251 Subsection 15(3) of the National Capital Act is repealed. Coming into Force Order in council 252 (1) Sections 247 and 251 come into force on a day to be fixed by order of the Governor in Council. Order in council (2) Sections 248 to 250 come into force on a day or days to be fixed by order of the Governor in Council. DIVISION 5 R.S., c. T- 2 Tax Court of Canada Act Amendments to the Act 253 Paragraphs 18(1)(a) and (b) of the Tax Court of Canada Act are replaced by the following: (a) the aggregate of all amounts in issue is equal to or less than $ 50,000 ; or (b) the amount of the loss that is determined under subsection 152(1.1) of that Act and that is in issue is equal to or less than $ 100,000 . 254 Section 18.1 of the Act is replaced by the following: Limit 18. 1 Every judgment that allows an appeal referred to in subsection 18(1) is deemed to include a statement that the aggregate of all amounts in issue not be reduced by more than $ 50,000 or that the amount of the loss in issue not be increased by more than $ 100,000 , as the case may be. 255 (1) Paragraph 18.11(2)(b) of the Act is replaced by the following: (b) the aggregate of the following amounts exceeds $ 50,000 : (i) all amounts in issue in the appeal, (ii) all amounts likely to be affected in the other appeal referred to in subparagraph (a)(i), and (iii) all amounts likely to be affected in the other assessment or proposed assessment referred to in subparagraph (a)(ii). (2) Subsection 18.11(3) of the Act is replaced by the following: General procedure applies — interest exceeding $50,000 (3) The Court shall grant an application under subsection (1) if the amount of interest that is in issue in an appeal exceeds $ 50,000 . 256 (1) Paragraphs 18.12(1)(a) and (b) of the Act are replaced by the following: (a) the aggregate of all amounts in issue exceeds $ 50,000 ; or (b) the amount of the loss in issue exceeds $ 100,000 . (2) Subsection 18.12(2) of the Act is replaced by the following: Limitation (2) Subsection (1) does not apply if the appellant elects to limit the aggregate of all amounts in issue to $ 50,000 or the amount of the loss in issue to $ 100,000 , as the case may be. 257 (1) Paragraphs 18.13(1)(a) and (b) of the Act are replaced by the following: (a) the aggregate of all amounts in issue exceeds $ 50,000 ; or (b) the amount of loss in issue exceeds $ 100,000 . (2) Paragraph 18.13(2)(a) of the Act is replaced by the following: (a) the appellant elects to limit the aggregate of all amounts in issue to $ 50,000 or the amount of the loss in issue to $ 100,000 , as the case may be; or 258 Section 18.27 of the Act is replaced by the following: Regulations 18. 27 The Governor in Council may make regulations increasing the amount in dispute referred to in paragraphs 18.3002(3)(c) and 18.3008(c) and subparagraph 18.3009(1)(c)(i) to any amount that does not exceed $12,000. 259 Subparagraph 18.3001(c)(ii) of the Act is replaced by the following: (ii) the amount in dispute does not exceed $ 100,000 . 260 Section 18.30012 of the Act is replaced by the following: Limit — Excise Tax Act 18. 30012 Every judgment that allows an appeal referred to in paragraph 18.3001(c) is deemed to include a statement that the amount in dispute not be reduced by more than $ 100,000 . 261 Section 18.30022 of the Act is replaced by the following: Order for general procedure — Excise Tax Act 18. 30022 If, before the start of the hearing of an appeal referred to in paragraph 18.3001(c), it appears to the Court that the amount in dispute exceeds $ 100,000 , the Court shall order that sections 17.1 to 17.8 apply in respect of the appeal unless the appellant elects to limit the appeal to $ 100,000 . 262 The portion of section 18.30024 of the Act before paragraph (b) is replaced by the following: Order at hearing — Excise Tax Act 18. 30024 If, after the hearing of an appeal referred to in paragraph 18.3001(c) has started but before a judgment is rendered on the appeal, it appears to the Court that the amount in dispute exceeds $ 100,000 , the Court shall, on motion of either party or of its own motion, order that sections 17.1 to 17.8 apply with respect to the appeal unless (a) the appellant elects to limit the appeal to $ 100,000 ; or Transitional Provision Ongoing appeals 263 Sections 18, 18.1, 18.11, 18.12, 18.13, 18.3001, 18.30012, 18.30022 and 18.30024 of the Tax Court of Canada Act , as they read immediately before the day on which this Division comes into force, continue to apply in respect of appeals for which a notice of appeal is filed with the Registry of the Tax Court of Canada on or before that day. Repeal SOR/93-295 264 The Maximum Amounts for Informal Procedure Regulations are repealed. DIVISION 6 R.S., c. A- 1 Access to Information Act 265 Schedule II to the Access to Information Act is amended by adding, in alphabetical order, a reference to Retail Payment Activities Act Loi sur les activités associées aux paiements de détail and a corresponding reference to “subsections 62(1) and 63(1)”. DIVISION 7 Outstanding Guarantee and Protected Loan Limits R.S., c. N- 11 National Housing Act 266 Section 15 of the National Housing Act is replaced by the following: Maximum total 15 Despite anything in this Act, the total of the outstanding guaranteed amounts of principal for all issues of securities in respect of which guarantees that have been given under section 14 are in force must not exceed the sum of (a) one trillion dollars; and (b) any additional amounts authorized by Parliament under an appropriation Act or other Act of Parliament on or after the day on which the Budget 2025 Implementation Act, No. 2 receives royal assent . 2011, c. 15, s. 20 Protection of Residential Mortgage or Hypothecary Insurance Act 267 The portion of section 27 of the Protection of Residential Mortgage or Hypothecary Insurance Act before paragraph (a) is replaced by the following: Limit 27 The aggregate outstanding principal amount of the following loans must not at any time exceed $500,000,000,000 or any other amount authorized by Parliament under an appropriation Act or other Act of Parliament on or after the day on which the Budget 2025 Implementation Act, No. 2 receives royal assent : DIVISION 8 R.S., c. B-3; 1992, c. 27, s. 2 Bankruptcy and Insolvency Act 268 The definition court in section 2 of the Bankruptcy and Insolvency Act is replaced by the following: court , except in sections 9.2 and 9.3 , paragraphs 178(1)(a) and (a.1) and sections 204.1 to 204.3, means a court referred to in subsection 183(1) or (1.1) or a judge of that court, and includes a registrar when exercising the powers of the court conferred on a registrar under this Act; ( tribunal ) 269 The Act is amended by adding the following after section 9: Reviewable conduct 9. 1 A person engages in reviewable conduct if (a) not being a licensed trustee, the person uses the title “trustee” or “licensed trustee” or a variation or abbreviation of either of those titles, or any words, name or designation, in a manner that leads to a reasonable belief that the person holds a licence as a trustee; (b) not being a licensed trustee, the person does any act of, or represents itself to be, a licensed trustee; (c) the person directly or indirectly solicits or canvasses any person to make an assignment or a proposal under this Act, or to file an application for a bankruptcy order; or (d) the person makes a representation to the public relating to bankruptcy or insolvency that is false or misleading in a material respect. Definition of court 9. 2 In section 9.3, court means a court set out in subsection 183(1) or (1.1) or the Federal Court. Determination and judicial order 9.3 (1) If, on application by the Superintendent, a court determines that a person is engaging in or has engaged in reviewable conduct referred to in section 9.1, the court may (a) order the person not to engage in the conduct or substantially similar reviewable conduct; (b) order the person to publish or otherwise disseminate a notice, in such manner and at such times as the court may specify, to bring to the attention of the class of persons likely to have been reached or affected by the conduct the name under which the person carries on business and the determination made under this section, including (i) a description of the conduct, (ii) the time period and geographical area to which the conduct relates, and (iii) a description of the manner in which any representation or advertisement was disseminated, including, where applicable, the name of the publication or other medium employed; (c) order the person to make restitution to any person affected by the reviewable conduct or the trustee of the bankrupt of any amount of money that the person or estate has been deprived of as a result of the reviewable conduct, including the amounts paid for any product or service related to the reviewable conduct; and (d) grant any other relief that the court considers appropriate. Certain matters need not be established (2) For greater certainty, in proceedings under subsection (1), it is not necessary to establish that (a) any person was deceived or misled; (b) any member of the public to whom the representation was made was in Canada; or (c) the representation was made in a place to which the public had access. General impression to be considered (3) In proceedings under subsection (1), the general impression conveyed by a representation as well as its literal meaning shall be taken into account in determining whether or not the person that made the representation engaged in the reviewable conduct. 270 (1) Paragraph 202(1)(a) of the Act is repealed. (2) Paragraph 202(1)(f) of the Act is repealed. (3) Section 202 of the Act is amended by adding the following after subsection (2): Unlicensed person (2.01) Every person that, not being a licensed trustee, does any act as, or represents itself to be, a licensed trustee is guilty of an offence punishable on summary conviction and is liable (a) in the case of a person other than an individual, to a fine not exceeding $1,000,000; or (b) in the case of an individual, to a fine not exceeding $100,000 or to imprisonment for a term not exceeding one year, or to both. Solicitation — assignment or proposal (2.02) Every person that directly or indirectly solicits or canvasses any person to make an assignment or a proposal under this Act or to file an application for a bankruptcy order is guilty of an offence punishable on summary conviction and is liable (a) in the case of a person other than an individual, to a fine not exceeding $1,000,000; or (b) in the case of an individual, to a fine not exceeding $100,000 or to imprisonment for a term not exceeding one year, or to both. DIVISION 9 R.S., c. L- 2 Canada Labour Code Amendments to the Act 271 The Canada Labour Code is amended by adding the following after section 237: DIVISION XI. 1 Non-Compete Clauses and Other Employment-Related Restrictions Definitions 237. 1 The following definitions apply in this Division. non-compete clause  means a term or condition of employment, or a clause in an agreement, that prohibits an employee from engaging in any business, work, occupation or trade, profession, project or other activity that is in competition with the employer’s federal work, undertaking or business after the employee ceases to be employed. ( clause de non-concurrence ) other employment-related restriction  means a term or condition of employment, or a clause in an agreement, that is not a non-compete clause and is part of a class specified in the regulations. ( autre restriction liée à l’emploi ) Prohibition 237.2 (1) It is prohibited for an employer to agree to a non-compete clause or other employment-related restriction with an employee or trade union or impose one on an employee, including by inducing the employee to agree to one. Void (2) A non-compete clause or other employment-related restriction is void or, in Quebec, null. Exemptions (3) Subject to the regulations, subsections (1) and (2) do not apply in respect of (a) a person who leases or transfers, by sale, merger or otherwise, their work, undertaking or business, or any part of it, to an employer and, immediately following the lease or transfer, becomes an employee of that employer, if the person agrees to a non-compete clause or other employment-related restriction as part of the lease or transfer and if the work, undertaking or business (i) is a federal work, undertaking or business, or (ii) becomes a federal work, undertaking or business due to the lease or transfer; (b) a person who holds the position or performs the functions of chief executive officer; (c) an employee who reports directly to the person holding the position or performing the functions of chief executive officer and is the only employee who holds the position or performs the functions of president, chief operating officer, chief financial officer, chief human resources officer, chief information officer, chief technology officer or chief legal officer, unless, despite holding that position or performing its functions, the employee is not a manager within the meaning of subsection 167(3); or (d) an employee who reports directly to the person holding the position or performing the functions of chief executive officer and holds or performs the functions of a position, or a position that is part of a class of positions, that is specified in the regulations. Prohibition — reprisals 237. 3 It is prohibited for an employer to (a) dismiss, suspend, lay off, demote or discipline an employee because the employee has refused to agree to or comply with a non-compete clause or other employment-related restriction; or (b) take into account an employee’s refusal to agree to a non-compete clause or other employment-related restriction in any decision to promote or train that employee, unless the promotion is to a position subject to the exemption under paragraph 237.2(3)(b), (c) or (d) or the training is a requirement for such a promotion. Burden of proof 237. 4 If, in any proceeding under this Part other than a prosecution, or in any proceedings under Part IV in respect of a violation that is related to this Division, an employer alleges that a term or condition of employment or a clause of an agreement is not a non-compete clause or other employment-related restriction or that a non-compete clause or other employment-related restriction is not void or, in Quebec, not null, the burden of proof is on the employer. Regulations 237. 5 The Governor in Council may make regulations (a) specifying, for the purposes of the definition other employment-related restriction in section 237.1, classes of terms or conditions of employment, or classes of clauses of agreements, that, in the Governor in Council’s opinion, unreasonably restrict the ability of employees to engage in any business, work, occupation or trade, profession, project or other activity; (b) defining any term for the purposes of this Division; (c) imposing terms and conditions for the purposes of subsection 237.2(3); or (d) specifying, for the purposes of paragraph 237.2(3)(d), positions, or classes of positions, if, in the Governor in Council’s opinion, the negative impact on employers of the positions, or classes of positions, not being specified outweighs the negative impact of the positions, or classes of positions, being specified on the employees who hold or perform the functions of those positions or the positions of those classes. 272 Paragraph 246.1(1)(a.1) of the Act is replaced by the following: (a.1) the employer has taken action against the employee in contravention of paragraph 210.5(a) or (b) or 237.3(a) or (b) ; Transitional Provision Subsection 237.2(2) — Canada Labour Code 273 Subsection 237.2(2) of the Canada Labour Code does not apply until the first anniversary of the day on which subsection 237.2(1) of that Act comes into force in respect of a non-compete clause or other employment-related restriction , as those terms are defined in section 237.1 of that Act, that is in effect on the day on which that subsection 237.2(1) comes into force, including a non-compete clause or other employment-related restriction that is agreed to by an employer whose work, undertaking or business becomes a federal work, undertaking or business , as defined in section 2 of that Act, during the period beginning on the day on which that subsection 237.2(1) comes into force and ending on the first anniversary of that day. Coming into Force Order in council 274 This Division comes into force on a day to be fixed by order of the Governor in Council. DIVISION 10 R.S., c. H- 6 Canadian Human Rights Act Amendments to the Act 275 Subsections 26(1) and (2) of the Canadian Human Rights Act are replaced by the following: Commission established 26 (1) A commission is established to be known as the Canadian Human Rights Commission, in this Act referred to as the “Commission”, consisting of a Chief Commissioner, a member referred to as the “Accessibility Commissioner”, a member referred to as the “Pay Equity Commissioner” and not less than three and not more than six other members, to be appointed by the Governor in Council. Members (2) The Chief Commissioner, the Accessibility Commissioner and the Pay Equity Commissioner are full-time members of the Commission and the other members may be appointed as full-time or part-time members. 276 Subsections 31(2) and (3) of the Act are replaced by the following: Absence or incapacity of Chief Commissioner (2) If the Chief Commissioner is absent or incapacitated or the office of the Chief Commissioner is vacant, the full-time member, other than the Accessibility Commissioner, with the most seniority has all the powers and may perform all the duties and functions of the Chief Commissioner. Transitional Provision Deemed appointment 277 The person occupying the position of Deputy Chief Commissioner of the Canadian Human Rights Commission immediately before the day on which this section comes into force is deemed, on that day, to have been appointed as Chief Commissioner under section 26 of the Canadian Human Rights Act for a term equal to the remainder of that person’s term as Deputy Chief Commissioner. DIVISION 11 R.S., c. I- 19 International Development Research Centre Act 278 Section 3 of the International Development Research Centre Act is replaced by the following: Centre established 3 A corporation is established, to be called the International Development Research Centre, consisting of a Board of Governors that is composed of a Chairperson, the President and not more than 10 other governors. 279 Subsections 10(1) and (2) of the Act are replaced by the following: Majority of governors 10 (1) The Chairperson, the Vice-chairperson and at least half of the other governors must be Canadian citizens. Qualification (2) At least six of the governors must have experience in the field of international development or experience or training in the natural or social sciences or technology. 280 Subsection 16(3) of the Act is replaced by the following: Quorum (3) Six governors, at least four of whom are Canadian citizens, constitute a quorum of the Board. However, the proceedings of any meeting of the Board that is attended by more than six governors are not valid unless a majority of those governors are Canadian citizens. DIVISION 12 1997, c. 13; 2018, c. 9, s. 2 Tobacco and Vaping Products Act 281 Section 60.1 of the Tobacco and Vaping Products Act is replaced by the following: Review of Act 60.1 (1) The Minister must, within the five-year period beginning on July 1, 2026 and then within every five-year period beginning on the day after the day on which a report referred to in subsection (2) has been tabled in both Houses of Parliament, undertake a review of the provisions and operation of this Act. Report to Parliament (2) The Minister must cause a report on the review to be tabled in each House of Parliament within the six-month period beginning on the day after the day on which the applicable five-year period ends or, if either House is not sitting on the last day of that six-month period, on any of the next 30 days during which that House is sitting. DIVISION 13 2002, c. 28 Pest Control Products Act Amendments to the Act 282 Subsection 16(2) of the Pest Control Products Act is replaced by the following: Assessment — health or environmental risks (2) The Minister shall, no later than 15 years after the later of the following days, initiate an assessment to determine, on the basis of available information, whether the health or environmental risks posed by a registered pest control product have increased significantly since that day: (a) the day on which the most recent decision statement in respect of a decision of a type referred to in paragraph 28(1)(a) or (b) in relation to that product was made public, and (b) the day on which the most recent assessment of that product initiated under this subsection was completed. Re-evaluation required (2.1) Without limiting the generality of subsection (1), the Minister shall initiate a re-evaluation of the registered pest control product if, after carrying out the assessment, the Minister has reasonable grounds to believe that the health or environmental risks of that product have increased significantly. Power to delay — special review (2.2) If a special review has been initiated in relation to a registered pest control product for which an assessment is required under subsection (2), the Minister may delay the assessment until the decision statement respecting that special review is made public under subsection 28(5). Scope of re-evaluation (2.3) If a re-evaluation is initiated following an assessment that was delayed under subsection (2.2), the Minister may narrow the scope of the re-evaluation to exclude any aspect of the registered pest control product that prompted the special review. 283 The Act is amended by adding the following after section 17.1: Termination of special review 17. 11 The Minister may terminate a special review that has been initiated in relation to a registered pest control product at any time before a decision statement is made public under subsection 28(5) respecting the special review if the Minister initiates a re-evaluation of that product under subsection 16(1) or (2.1) and the re-evaluation includes the aspect of the product that prompted the special review. 284 Section 17.2 of the Act is replaced by the following: Duty to make public 17. 2 The Minister shall make public each of the following: (a) a determination made under subsection 16(2.1) that, after carrying out an assessment, the Minister has reasonable grounds to believe that the health or environmental risks of a registered pest control product have increased significantly and the reasons for that determination; (b) a decision made under subsection 16(2.2) to delay an assessment and the reasons for that decision; (c) a decision made under subsection 17(7) to expand the scope of a re-evaluation or special review to include an aspect that would otherwise prompt a new special review under subsection 17(2) and the reasons for that decision ; (d) a decision made under subsection 17.1(1) or (2) not to initiate a special review in relation to an aspect that would otherwise prompt such a review under subsection 17(2) and the reasons for that decision; and (e) a decision made under section 17.11 to terminate a special review and the reasons for that decision . Transitional Provisions Definition of Act 285 (1) In this section, Act means the Pest Control Products Act . Words and expressions (2) Unless the context otherwise requires, words and expressions used in this section have the same meaning as in the Act. Ongoing re-evaluations (3) Subject to subsection (4), if a re-evaluation was initiated under subsection 16(2) of the Act, as it read immediately before the day on which this Division comes into force, and is not complete on that day, the re-evaluation continues in accordance with the Act, as amended on that day. Termination of ongoing re-evaluations (4) If a registered pest control product is under a re-evaluation that is continued under subsection (3), the Minister may, at any time, initiate an assessment of that product to determine, on the basis of available information, whether the health or environmental risks posed by that product have increased significantly since the day on which the most recent decision statement in respect of a decision of a type referred to in paragraph 28(1)(a) or (b) of the Act in relation to that product was made public. If, after carrying out the assessment, the Minister does not have reasonable grounds to believe that the health or environmental risks of that product have increased significantly since that day, then the re-evaluation is terminated. Assessment under the Act (5) An assessment initiated under subsection (4) is deemed to be an assessment initiated under subsection 16(2) of the Act. DIVISION 14 R.S., c. T- 7 Territorial Lands Act 286 The Territorial Lands Act is amended by adding the following after section 12: National interest 12.1 (1) If the Governor in Council is of the opinion that it is in the national interest, the Governor in Council may, by order, on the recommendation of the Minister, take any of the following measures with respect to territorial lands in Nunavut: (a) cancel a licence, the recording of a claim or a lease of a recorded claim; (b) provide, for any period that the Governor in Council may specify, that a claim that includes the lands that are specified in the order is not to be recorded; (c) provide that a lease of a recorded claim is not to be issued; (d) provide that a licence or a lease of a recorded claim is not to be renewed; (e) provide that the transfer of a recorded claim, a lease of a recorded claim or an interest in either of them is not to be recorded; (f) prohibit, for any period that the Governor in Council may specify, (i) a former licencee whose licence has been cancelled under paragraph (a) and any person related to them from making an application for a licence, (ii) a former claim holder in respect of whose claim the recording has been cancelled under paragraph (a) and any person related to them from making an application to record a claim that includes any unit that was included in the claim in respect of which the recording has been cancelled or from acquiring a legal or beneficial interest in respect of that claim, (iii) a former lessee whose lease of a recorded claim has been cancelled under paragraph (a) and any person related to them from making an application to obtain a lease of a recorded claim that includes any unit that was included in the claim in respect of which the lease has been cancelled, (iv) a holder of a recorded claim in respect of which a lease is not to be issued under paragraph (c) and any person related to them from making an application to obtain a lease of a recorded claim that includes any unit that was included in the claim in respect of which a lease is not to be issued, (v) a licencee whose licence is not to be renewed under paragraph (d) and any person related to them from making an application for a licence or an application to renew the licence, (vi) a lessee of a recorded claim whose lease is not to be renewed under paragraph (d) and any person related to them from making an application to renew the lease or an application to obtain a lease of a recorded claim that includes any unit that was included in the claim in respect of which the lease is not to be renewed, (vii) a holder of a recorded claim — or a holder of an interest in a recorded claim — for which the transfer is not to be recorded under paragraph (e) and any person related to them from making an application for the transfer of a recorded claim — or of an interest in a recorded claim — that includes any unit that was included in the claim in respect of which the transfer is not to be recorded or in respect of which the transfer of an interest is not to be recorded, or (viii) a lessee of a recorded claim — or a holder of an interest in a lease of a recorded claim — for which the transfer is not to be recorded under paragraph (e) and any person related to them from making an application for the transfer of a lease — or of an interest in a lease — of a recorded claim that includes any unit that was included in the claim in respect of which the transfer of the lease or the interest in it is not to be recorded; or (g) provide that the lands that were covered by a claim the recording of which has been cancelled under paragraph (a) are not to be opened for prospecting for any period that the Governor in Council may specify. Notice — order (2) The Minister shall, as soon as feasible after an order is made under subsection (1), give notice of the order to the holder of the right or interest that is the subject of the order. Compensation (3) The Minister shall, within 180 days after the day on which notice is given under subsection (2), determine whether compensation is to be paid and, if so, the amount that is to be paid to a (a) former claim holder in respect of whose claim the recording has been cancelled under paragraph (1)(a); (b) former lessee whose lease of a recorded claim has been cancelled under paragraph (1)(a); (c) holder of a recorded claim in respect of which a lease is not to be issued under paragraph (1)(c); or (d) lessee of a recorded claim whose lease is not to be renewed under paragraph (1)(d). Extension of 180-day period (4) The Minister may extend the 180-day period set out in subsection (3) by up to 180 days. Notice — compensation (5) The Minister shall, as soon as feasible after making a determination under subsection (3), give notice to the former claim holder, former lessee, holder of a recorded claim or lessee referred to in that subsection of whether compensation is to be paid to them and, if so, the amount of the compensation. Address or email address for notice (6) For the purposes of subsections (2) and (5), the Minister shall send the notice to the last known address or email address that the holder of the right or interest referred to in subsection (2) or the former claim holder, former lessee, holder of a recorded claim or lessee referred to in subsection (3) has provided (a) under section 3 of the Nunavut Mining Regulations ; or (b) in writing to the Minister. No other compensation (7) A person shall not have any right to claim or receive any compensation, damages, indemnity or other form of relief from His Majesty in right of Canada or from any servant or agent of His Majesty in right of Canada for any acquired, vested, future or potential right, interest or entitlement that is affected by an order made under subsection (1), other than any compensation that is determined by the Minister under subsection (3). Non-application of Statutory Instruments Act (8) The Statutory Instruments Act does not apply to an order made under subsection (1), but the order shall be published in the Canada Gazette within 23 days after the order is made. Regulations (9) The Governor in Council may make regulations respecting (a) the implementation of orders made under subsection (1); and (b) the compensation referred to in subsection (3). Words and expressions (10) Unless the context otherwise requires, words and expressions used in this section have the same meaning as in the Nunavut Mining Regulations . DIVISION 15 2015, c. 12 Red Tape Reduction Act 287 The definition excluded Act in section 11 of the Red Tape Reduction Act is replaced by the following: excluded Act  means the Access to Information Act , the Auditor General Act , the Canada Elections Act , the Conflict of Interest Act , the Criminal Code , the Export and Import Permits Act , the Financial Administration Act , the Foreign Influence Transparency and Accountability Act , the Investment Canada Act , the Lobbying Act , the Nuclear Safety and Control Act , the Official Languages Act , the Privacy Act , the Proceeds of Crime (Money Laundering) and Terrorist Financing Act or the Public Servants Disclosure Protection Act . ( loi exclue ) 288 (1) Paragraph 12(1)(c) of the English version of the Act is replaced by the following: (c) a provision of an Act of Parliament, except an excluded Act, or a provision of an instrument made under an Act of Parliament, except an instrument made under an excluded Act, if the minister administers or enforces the provision. (2) Subparagraph 12(3)(a)(ii) of the French version of the Act is replaced by the following: (ii) qu’elle permettrait de mettre à l’essai, entre autres, un produit, un service, un procédé, une procédure ou une mesure réglementaire dans le but de faciliter la conception, la modification ou l’administration d’un régime réglementaire et d’ainsi stimuler l’innovation, la compétitivité ou la croissance économique dans le secteur des technologies propres ou des technologies financières, 289 Subsection 14.2(2) of the French version of the Act is replaced by the following: Exclusion (2) Le rapport fait état de l’arrêté et des renseignements visés à l’alinéa 14(1)a) ainsi que d’une évaluation de toute disposition d’une loi fédérale ou d’un texte pris en vertu d’une loi fédérale qui pourrait être modifiée ou abrogée en vue de stimuler l’innovation, la compétitivité ou la croissance économique dans le secteur des technologies propres ou des technologies financières. DIVISION 16 Defence Investment Agency Act and Defence Production Act SUBDIVISION A Defence Investment Agency Act Enactment of Act Enactment 290 The Defence Investment Agency Act is enacted as follows: An Act to establish the Defence Investment Agency Alternative Title Alternative title 1 This Act may be cited as the Defence Investment Agency Act . Definitions Definitions 2 The following definitions apply in this Act. Agency  means the Defence Investment Agency established under section 4 . ( Agence ) Minister  means the member of the King’s Privy Council for Canada designated under section 3 . ( ministre ) Designation of Minister Minister 3 The Governor in Council may, by order, designate a member of the King’s Privy Council for Canada as the Minister for the purposes of this Act. Defence Investment Agency Establishment 4 The Defence Investment Agency is established. Mandate 5 The mandate of the Agency is to assist the Minister in the exercise or performance of the Minister’s powers, duties and functions under this Act or the Defence and National Security Production and Procurement Act . Minister to preside 6 The Minister presides over the Agency and has the management and direction of it. Chief Executive Officer 7 (1) The Chief Executive Officer of the Agency is to be appointed by the Governor in Council to hold office during pleasure for a renewable term of up to five years. Deputy head (2) The Chief Executive Officer has the rank and status of a deputy head of a department. Remuneration (3) The Chief Executive Officer is to be paid the remuneration fixed by the Governor in Council. Absence or incapacity of Chief Executive Officer (4) In the event of the absence or incapacity of the Chief Executive Officer, or a vacancy in that office, the Minister may authorize any person to act as Chief Executive Officer, but no person so authorized has authority to act for a term of more than 90 days without the Governor in Council’s approval. Technical assistance (5) The Chief Executive Officer may engage on a temporary basis the services of persons having technical or specialized knowledge of any matter relating to the Chief Executive Officer’s work to advise and assist the Chief Executive Officer in the exercise of their powers and performance of their duties and functions and, with the approval of the Treasury Board, may fix and pay the remuneration and expenses of those persons. Officers and employees 8 The officers and employees necessary for the proper conduct of the work of the Agency are to be appointed in accordance with the Public Service Employment Act . Other government services and facilities 9 A department, board or agency of the Government of Canada may provide services and facilities to the Agency. Provision of services and facilities 10 The Agency may provide services and facilities to a department, board or agency of the Government of Canada. Minister’s Powers, Duties and Functions Powers, duties and functions 11 (1) The powers, duties and functions of the Minister extend to and include all matters over which Parliament has jurisdiction, not by law assigned to any other department, board or agency of the Government of Canada, relating to production, procurement and investment in respect of national defence or national security. Policies, directives and programs (2) Without restricting the generality of subsection (1), the Minister may initiate, recommend, implement and promote policies and programs relating to production, procurement and investment in respect of national defence or national security. Considerations 12 In exercising or performing the powers, duties and functions relating to production, procurement and investment in respect of national defence or national security, the Minister must consider (a) the efficiency of national defence or national security procurement; (b) the stimulation of investment in the national defence sector or national security sector; (c) the stimulation and promotion of research, development and innovation in the national defence sector or national security sector; (d) the possibility of joint procurement and other forms of cooperation with associated governments , as defined in section 2 of the Defence and National Security Production and Procurement Act ; and (e) the protection and acquisition of intellectual property rights. Contracts 13 (1) The Minister may, on behalf of the Government of Canada, enter into contracts for the purposes of exercising or performing the Minister’s powers, duties or functions. Terms (2) The Minister may fix terms of contracts and give instructions and fix terms in respect of other documents relating to those contracts and their formation. Designation (3) The terms and instructions may be identified by number or other designation and may be incorporated in a contract or other document by reference to their number or other designation. Publication (4) The Minister may, by regulation, prescribe the electronic or other means by which a term or instruction, including its identification number or other designation, must be published. Construction of terms (5) Subject to its express terms, a contract, or any document relating to the contract or its formation, entered into by the Minister that provides that instructions or terms identified by number or other designation are applicable to or form part of the contract or other document is to be read and construed as if the instructions or terms that are referred to were expressly set out in the contract or other document. Delegation — other ministers 14 (1) The Minister may, subject to any terms that the Minister may specify, delegate any of the Minister’s powers, duties or functions to an appropriate minister, other than a power exercised or duty or function performed under (a) subsection 11 (2) or section 15 ; or (b) subsection 15.1(1), 17(1) or 26(2) of the Defence and National Security Production and Procurement Act . For greater certainty (2) For greater certainty, nothing in subsection (1) is to be construed as preventing an appropriate minister from doing the activities described in subsection 15.1(1) of the Defence and National Security Production and Procurement Act under any other Act of Parliament or any other law. Delegation — chief executive (3) The Minister may, with respect to a department over which the Minister does not preside but for which the Minister is the appropriate minister, delegate any of the Minister’s powers, duties or functions other than those referred to in paragraph (1)(a) or (b) to the chief executive of that department. Subdelegation — chief executive (4) The appropriate minister for a department may, subject to and in accordance with the delegation under subsection (1), subdelegate to the chief executive of that department any of the powers, duties or functions that were delegated to the appropriate minister under that subsection. Subdelegation — other persons (5) The chief executive of a department may, subject to and in accordance with the delegation under subsection (3) or the subdelegation under subsection (4), subdelegate to any person under their jurisdiction any of the powers, duties or functions that were delegated or subdelegated to them under subsection (3) or (4). Definitions (6) The following definitions apply in this section. appropriate minister  has the same meaning as in section 2 of the Financial Administration Act . ( ministre compétent ) chief executive  means (a) with respect to a department named in Part I of Schedule VI to the Financial Administration Act , its deputy minister; (b) with respect to a department named in Part II or III of that Schedule, the person occupying the position set out opposite that name; and (c) with respect to a department that is not named in that Schedule, the chief executive officer, deputy head or the person who occupies any other similar position in that department. ( administrateur principal ) Advisers and advisory committees 15 (1) The Minister may appoint advisers and establish advisory committees to advise and aid the Minister in exercising and performing the powers, duties and functions relating to production, procurement and investment in respect of national defence or national security, and may provide for their membership, duties, functions and operation. Remuneration (2) The Minister may fix the remuneration that advisers and members of an advisory committee are to be paid for the performance of their duties and functions. Reimbursement (3) Advisers and members of an advisory committee are to be reimbursed for the travel, living and other expenses incurred in the performance of their duties and functions. Regulations Governor in Council 16 The Governor in Council may make regulations for the purpose of carrying out the purposes and provisions of this Act. Transitional Provisions Definitions 291 The following definitions apply in sections 292 to 295 . former agency  means the portion of the federal public administration, within the Department of Public Works and Government Services, known as the Defence Investment Agency. ( ancienne agence ) new agency  means the Defence Investment Agency established under section 4 of the Defence Investment Agency Act . ( nouvelle agence ) Contracts, agreements and other arrangements 292 (1) Any contract, agreement or other arrangement respecting the acquisition of defence supplies or the construction of defence projects entered into by the Minister of Public Works and Government Services are deemed to have been entered into by the Minister designated under section 3 of the Defence Investment Agency Act . Powers, duties and functions (2) Any power, duty or function that is exercisable by an officer or employee of the former agency under any Act, order, rule or regulation or under any contract, lease, licence or other document is to be exercised by the appropriate officer or employee of the new agency. Chief Executive Officer 293 The person who occupies the position of Chief Executive Officer of the former agency immediately before the day on which the Defence Investment Agency Act comes into force continues in office and is deemed to have been appointed as the Chief Executive Officer of the new Agency under subsection 7(1) of that Act for the remainder of the term for which they had been appointed. Employees 294 Nothing in the Defence Investment Agency Act is to be construed as affecting the status of an employee who, immediately before the day on which that Act comes into force, occupied a position in the former agency, except that the employee, beginning on that day, occupies that position in the new agency. Transfer of appropriations 295 Any amount that is appropriated, for the fiscal year in which the Defence Investment Agency Act comes into force, by an appropriation Act based on the Estimates for that year for defraying the federal public administration’s charges and expenses for the former agency and that is unexpended on the day on which that Act comes into force is deemed, on that day, to be an amount appropriated for defraying the federal public administration’s charges and expenses for the new agency. Related and Consequential Amendments R.S., c. A- 1 Access to Information Act 296 Schedule I to the Access to Information Act is amended by adding the following, in alphabetical order, under the heading “Other Government Institutions”: Defence Investment Agency Agence de l’investissement pour la défense R.S., c. F- 11 Financial Administration Act 297 Schedule I.1 to the Financial Administration Act is amended by adding, in alphabetical order in column I, a reference to Defence Investment Agency Agence de l’investissement pour la défense and a corresponding reference in column II to “Member of the King’s Privy Council for Canada designated as the Minister for the purposes of the Defence Investment Agency Act ”. 298 Schedule IV to the Act is amended by adding the following in alphabetical order: Defence Investment Agency Agence de l’investissement pour la défense 299 Part II Schedule VI to the Act is amended by adding, in alphabetical order in column 1, a reference to Defence Investment Agency Agence de l’investissement pour la défense and a corresponding reference in column II to “Chief Executive Officer”. R.S., c. P- 21 Privacy Act 300 The schedule to the Privacy Act is amended by adding the following, in alphabetical order, under the heading “Other Government Institutions”: Defence Investment Agency Agence de l’investissement pour la défense R.S., c. P- 36 Public Service Superannuation Act 301 Part I of Schedule I to the Public Service Superannuation Act is amended by adding the following in alphabetical order: Defence Investment Agency Agence de l’investissement pour la défense 1991, c. 30 Public Sector Compensation Act 302 Schedule I to the Public Sector Compensation Act is amended by adding the following, in alphabetical order, under the heading “Other Portions of the Public Service”: Defence Investment Agency Agence de l’investissement pour la défense 1997, c. 36 Customs Tariff 303 The reference to “Minister of Public Works and Government Services” set out in the Description of Goods of tariff item No. 9982.00.00 in the List of Tariff Provisions set out in the schedule to the Customs Tariff is replaced by the following: Minister designated under section 3 of the Defence Investment Agency Act or the Minister of National Defence SUBDIVISION B R.S., c. D- 1 Defence Production Act Amendments to the Act 304 The long title of the Defence Production Act is replaced by the following: An Act respecting production and procurement in relation to defence and national security and respecting the control of certain goods 305 Section 1 of the Act is replaced by the following: Short title 1 This Act may be cited as the Defence and National Security Production and Procurement Act . 306 The heading before section 2 of the French version of the Act is replaced by the following: Définitions et interprétation 307 (1) The definition sale in section 2 of the Act is repealed. (2) The definitions associated government , defence projects and government issue in section 2 of the Act are replaced by the following: associated government  means (a) His Majesty’s Government in the United Kingdom or any other government of the Commonwealth, (b) the government of a country that is a member of the North Atlantic Treaty Organisation, (c) the government of a country, or an international organization of states, that is recognized by the North Atlantic Treaty Organisation as a partner in good standing of that Organisation, (d) the European Union or the government of any of its member states, and (e) the government of any other country designated by the Governor in Council as being a country the defence of which is vital to the defence of Canada; ( gouvernement associé ) defence projects  means (a) military works, including buildings, aerodromes, airports, dockyards, roads and defence fortifications, (b) works required for the production, maintenance or storage of defence supplies, (c) works in relation to residential communities, including non-military residential communities, on federal real property or federal immovables under the administration of the Minister of National Defence, or (d) works required for the purposes of national security; ( ouvrages de défense ) government issue  means machinery, machine tools, equipment or defence supplies that are furnished by the Minister or by an agent of His Majesty on behalf of His Majesty or of an associated government, or that are acquired on behalf of His Majesty or of an associated government with funds provided by the Minister, an agent of His Majesty or an associated government; ( fournitures d’État ) (3) The definition Minister in section 2 of the Act is replaced by the following: Minister  means (a) in relation to Part 1, the Minister designated under section 3 of the Defence Investment Agency Act , and (b) in relation to Part 2 , the Minister of Public Works and Government Services; ( ministre ) (4) The definition defence contract in section 2 of the Act is amended by striking out “and” at the end of paragraph (a) and by adding the following after that paragraph: (a.1) a contract with His Majesty or an agent of His Majesty, or with an associated government, that in any way relates to defence services, and (5) Paragraph (a) of the definition defence subcontract in section 2 of the Act is replaced by the following: (a) to perform all or any part of the work or service or make or furnish anything for the purpose of any other defence contract, (6) Paragraph (c) of the definition defence subcontract in section 2 of the Act is replaced by the following: (c) under which any part of the services performed or to be performed consists of soliciting, attempting to negotiate or negotiating any other defence contract or soliciting or negotiating for the acquisition or disposition of anything , or for the acquisition or provision of any services, required to fulfill any other defence contract, (7) Paragraphs (a) to (c) of the definition defence supplies in section 2 of the Act are replaced by the following: (a) anything — including any physical thing, animal, data or intangible or incorporeal property — that is required or used for the purposes of national defence or national security or for cooperative efforts for defence or security being carried on by the Government of Canada and an associated government, (b) a vessel of any kind, whether floating or submersible, other than a pleasure craft, and (c) anything used for the production or supply of anything referred to in paragraph (a) or (b) or for the construction of defence projects; ( matériel de défense ) (8) Section 2 of the Act is amended by adding the following in alphabetical order: acquire  includes to lease; ( acquérir ) defence services  means services that are required or provided for the purposes of national defence or national security, for cooperative efforts for defence or security being carried on by the Government of Canada and an associated government or for the construction of defence projects, but does not include legal services and services provided by an individual in their capacity as an officer or employee of His Majesty or as a member of the Canadian Forces; ( services de défense ) dispose  includes to consign and to lease; ( disposer ) 308 The headings before section 3 and sections 3 to 9 of the Act are replaced by the following: Multiple purposes permissible 3 For greater certainty, works, things and services are not excluded, respectively, from the definitions defence projects , defence supplies or defence services in section 2 merely because the works, things or services are required, used or provided for an additional purpose beyond what is set out in the applicable definition. PART 0. 1 General Act prevails 4 The powers, duties and functions conferred by or under this Act may be exercised or performed despite anything in the Department of Public Works and Government Services Act . Non-disclosure of information 5 No information with respect to an individual business that has been obtained under or by virtue of this Act shall be disclosed without the consent of the person carrying on that business, except (a) to a government department, or any person authorized by a government department, requiring the information for the purpose of the discharge of the functions of that department; or (b) for the purposes of any prosecution for an offence under this Act or, with the consent of the Minister, for the purposes of any civil suit or other proceeding at law. Powers of specific government companies 6 The Canadian Commercial Corporation, or a company to which the Government Corporations Operation Act applies, has capacity and power to make arrangements to act on behalf of the Minister under this Act or to enter into contracts to act as agent of His Majesty under this Act and the making of those arrangements or the entry into those contracts and the carrying out of those arrangements or contracts shall be deemed to be included in the objects and purposes for which the Corporation or the company was incorporated. PART 1 Production, Procurement and Investment Purpose Purpose of this Part 7 The purposes of this Part are to (a) provide for the supply of things and services, and for the construction of works, in relation to national defence and national security, including by fostering the capabilities and capacities of persons and industries to supply those things and services; and (b) regulate procurement in relation to national defence and national security. 309 Subsections 10(1) and (2) of the Act are replaced by the following: Exclusive authority 10 (1) The Minister has the exclusive authority to (a) acquire defence supplies and defence services required for the purposes of a department, board or agency of the Government of Canada ; and (b) construct defence projects required for the purposes of any department, board or agency referred to in paragraph (a) , except for defence projects to be constructed by individuals in their capacity as officers or employees of His Majesty or as members of the Canadian Forces. Exception — Shared Services Canada (2) The exercise of the powers referred to in subsection (1) is subject to any specification made by the Governor in Council under paragraph 6(a) or (c) of the Shared Services Canada Act . 310 The Act is amended by adding the following after section 10: National security exception 10. 1 Nothing in this Part or in the Defence Investment Agency Act precludes any federal department or agency from invoking a national security exception provided for in an agreement or arrangement relating to domestic or international trade to which the Government of Canada is a party. 311 Section 11 of the Act is replaced by the following: Acts on behalf of associated government 11 The Minister, if authorized by the Governor in Council to do so, may do or undertake, on behalf of an associated government, any act or thing that the Minister is authorized to do or undertake by this Part on behalf of His Majesty. 312 Section 12 of the Act and the heading before it are replaced by the following: Duties of Minister 12 The Minister shall (a) examine into, organize, mobilize and conserve the resources of Canada that contribute to defence supplies and their sources of supply; (b) examine into, organize, mobilize and conserve the workforce , agencies and facilities available for the supply of defence supplies, the provision of defence services and the construction of defence projects; (c) explore, estimate and provide for the fulfillment of the present and future needs of the Government of Canada and the community with respect to the supply of defence supplies, the provision of defence services and the construction of defence projects ; and (d) generally take steps to mobilize, conserve and coordinate all economic and industrial facilities in respect of defence supplies, defence services and defence projects and their supply, provision or construction. 313 (1) Subsection 13(1) of the Act is replaced by the following: Request for information 13 (1) The Minister may, by notice in writing, require that a person referred to in subsection (2) provide the Minister with any information with respect to (a) defence supplies produced, dealt in or controlled by the person or that the person holds, has contracted for or contemplates acquiring, as well as the sources of supply for them ; (b) defence services provided by the person or that the person has contracted to provide or contemplates providing, as well as the sources of supply for them; and (c) the facilities or accommodation that the person has available for or that are adaptable to the production or storage of defence supplies, the provision of defence services or the construction of defence projects. Duty to provide (1.1) The person referred to in the notice shall provide the requested information at the times, and in the form and manner, specified in the notice. (2) The portion of subsection 13(2) of the English version of the Act before paragraph (a) is replaced by the following: Persons providing information (2) Subsection (1) applies with respect to any person who (3) Subsection 13(2) of the Act is amended by striking out “or” at the end of paragraph (a), by adding “or” at the end of paragraph (b) and by adding the following after paragraph (b): (c) provides defence services or carries on a business that, in the opinion of the Minister, is suitable for providing defence services. 314 Section 14 of the Act is replaced by the following: Other departments to assist Minister in obtaining information 14 If a government department has, under any Act, the power to obtain, for any purpose, information on matters with respect to which the Minister is empowered to require that information be provided under subsection 13(1) , that department shall, if so required by the Minister, exercise that power for the purpose of assisting the Minister in obtaining that information. 315 Section 15 of the Act is replaced by the following: Stockpiling 15 (1) Subject to this Part , the Minister may, on behalf of His Majesty, acquire, store, maintain, transport or dispose of anything designated by the Governor in Council. Designation (2) For the purposes of subsection (1), the Governor in Council may designate anything that is essential to the needs of Canada, of a community in or outside of Canada or of an associated government for (a) the purposes of national defence, of national security, including economic security, or of the defence or security of an associated government or other state; or (b) the purpose of safeguarding against possible shortages of the thing. 316 The Act is amended by adding the following after section 15: Financial assistance 15.1 (1) For a purpose related to production, procurement or investment in respect of national defence or national security, or for a purpose related to defence supplies, defence services or a defence project or to subsection 15(1), the Minister may (a) make loans to any person; (b) make advance payments to any person; (c) with the approval of the Minister of Finance, guarantee the repayment of, or provide loan insurance or credit insurance in respect of, any financial obligation undertaken by any person; (d) make grants and contributions to any person; (e) with the approval of the Minister of Finance, acquire, exercise, assign or dispose of any shares , as defined in paragraph 90(5)(e) of the Financial Administration Act , of a corporation or other financial or similar instrument; and (f) where authorized by the Governor in Council on the recommendation of the Minister with the concurrence of the Minister of Finance, enter into any other financial agreement or arrangement. For greater certainty (2) For greater certainty, (a) the Minister’s powers set out in subsection (1) are in addition to the Minister’s other powers under this Part; and (b) loan insurance or credit insurance provided under paragraph (1)(c) constitutes a guarantee for the purposes of subsection 29(1) of the Financial Administration Act . 317 The heading before section 16 of the Act is repealed. 318 (1) The portion of section 16 of the Act before paragraph (a) is replaced by the following: Ministerial powers 16 The Minister may, on behalf of His Majesty and subject to this Part , (2) Paragraph 16(a) of the Act is replaced by the following: (a) acquire, utilize, store, transport or dispose of defence supplies; (3) Paragraphs 16(c) to (g) of the Act are replaced by the following: (c) construct, acquire or dispose of defence projects; (d) acquire defence services or professional or commercial services other than defence services ; (e) acquire or dispose of real or personal property or any interest in real or personal property, or an immovable or a movable or any right in an immovable or a movable, that, in the Minister’s opinion, is or is likely to be useful for any purpose mentioned in paragraph (a), (b) or (c); and (f) do all things that, in the Minister’s opinion, are incidental to or useful for any of the matters referred to in paragraphs (a) to (e) or that may be authorized by the Governor in Council with respect to the procurement, construction or disposition of defence supplies or defence projects or the procurement of defence services . 319 The Act is amended by adding the following after section 16: Dealings for other purposes 16. 1 Anything that is acquired or produced, any service that is acquired, and any work that is acquired or constructed, under this Part may be dealt with under this Part for any purpose. 320 Sections 17 to 19 of the Act are replaced by the following: Expenditures from Consolidated Revenue Fund 17 (1) The Minister may pay out of the Consolidated Revenue Fund any amount payable in respect of the exercise of any power under any of subsection 15(1), paragraphs 15.1(1)(a) and (b) and section 16 or in respect of any other purpose prescribed by regulation. Maximum amount (2) The aggregate amount paid out under subsection (1) must not at any time exceed $1 billion. Deductions (3) The following amounts, if they are in respect of the same item for which a payment has been made under subsection (1), are to be deducted from the aggregate amount referred to in subsection (2): (a) any amount deposited in the Consolidated Revenue Fund that is received from the disposition of anything under this Part; (b) any amount deposited in the Consolidated Revenue Fund in repayment of the principal amount of a loan or in repayment of an advance payment; (c) any amount charged to another appropriation that is authorized by Parliament; (d) any amount deposited in the Consolidated Revenue Fund that is received from an associated government or an agent of His Majesty; and (e) any amount deposited in the Consolidated Revenue Fund in relation to an amount paid out in respect of a purpose prescribed by regulation under paragraph 33(2)(c). Limitation on deductions (4) The total of the amounts deducted under subsection (3) in respect of any item must not exceed the total payments made under subsection (1) with respect to the same item. Losses (5) A loss sustained in the acquisition and subsequent disposition of anything, or on account of any loan or advance payment or otherwise, and in respect of which a payment has been made under subsection (1) may be deducted from the aggregate amount referred to in subsection (2) if Parliament authorizes the deduction in an appropriation Act. Amendment (6) The maximum amount set out to in subsection (2) may be amended by an appropriation Act. Definition of item (7) In this section, item means (a) a thing referred to in paragraph (3)(a); (b) a loan or advance payment referred to in paragraph (3)(b); (c) the subject matter of an appropriation referred to in paragraph (3)(c); (d) the subject matter of an amount received that is referred to in paragraph (3)(d); or (e) the subject matter of an amount referred to in paragraph (3)(e). Loans from the Consolidated Revenue Fund 18 Despite subsection 17(1) but subject to any regulations made under paragraph 33(2)(c), the Minister may not make, in respect of the exercise of a power under paragraph 15.1(1)(a), a payment out of the Consolidated Revenue Fund under subsection 17(1) if the exercise of the power is for the purpose of (a) the construction, acquisition, extension or improvement of capital equipment or works by any person; or (b) research, development or innovation in relation to defence supplies or defence services. 321 Paragraph 20(b) of the Act is replaced by the following: (b) subject to any provisions in the contract, His Majesty or the associated government in whom the title is vested is entitled at any time to remove or dispose of the government issue or building. 322 The Act is amended by adding the following after section 25: Rules on Competitive Procurement Application 26 (1) Sections 27 to 29 apply with respect to a defence contract, or a contract to acquire things or services under section 15, that provides for the payment of any money by His Majesty and that is not a lease of real property or immovables. Exclusive authority (2) The Minister has the exclusive authority to determine any question as to whether a contract is one that is described in subsection (1). Application of regulations — inconsistency or conflict (3) Nothing in sections 27 to 29 precludes the application of regulations made under section 41 of the Financial Administration Act to contracts described in subsection (1). However, regulations made in respect of sections 27 to 29 prevail — and, for greater certainty, those sections also prevail — over regulations made under that section 41 to the extent of any inconsistency or conflict. Competitive procurement process 27 Subject to section 28, the Minister shall conduct a competitive procurement process for a contract before entering into it. Exceptions 28 The Minister may dispense with conducting a competitive procurement process with respect to a contract if, in the Minister’s opinion, (a) the contract is for the purposes of addressing an urgent operational requirement; (b) the dispensation is necessary for the purposes of (i) conducting military operations, (ii) constructing, maintaining or operating critical defence projects, or (iii) safeguarding national security; (c) the dispensation is warranted in order to support a sector of the Canadian economy that is important to national defence or to national security, including economic security; (d) the contract is for defence supplies or defence services that are interoperable with defence projects, defence supplies or defence services — or that are interchangeable with defence supplies or defences services — of the Government of Canada or of an associated government; (e) the contract is in relation to sensitive technology; (f) only one person is capable of performing the contract; (g) the purpose of the contract is, for operational reasons, to fulfill an interim requirement for defence supplies or defence services or to ensure defence logistical capabilities on an interim basis; (h) the contract is related to a contract referred to in paragraph (g); (i) the contract is for the purpose of research, development or innovation in relation to defence supplies or defence services; (j) the contract is for defence supplies or defence services that were the subject of funding provided by the Government of Canada for research, development or innovation; (k) the contract is to be entered into (i) with a government entity, (ii) under an agreement or arrangement with a government entity, or (iii) under a procedure of an international organization of states of which Canada is a member; (l) any exception, set out in regulations made under section 41 of the Financial Administration Act , to a requirement to conduct a competitive procurement process applies, with any necessary modifications, in the circumstances; or (m) any other exception prescribed by regulation applies in the circumstances. Exclusion 29 (1) The Minister may exclude any person from participating in a competitive procurement process if the Minister has reasonable grounds to believe that the person, any person related to that person or anything proposed to be used in the performance of the contract poses a risk to national defence, national security or public safety. Reasons not required (2) The Minister is not required to provide a person who has been excluded under subsection (1) with the reasons for the exclusion. 323 Sections 30 to 32 of the Act are replaced by the following: Corporations 30 (1) If the Minister considers that it is likely to facilitate the carrying out of the purposes and provisions of this Part, the Minister may, with the approval of the Governor in Council, procure the incorporation of any one or more corporations for the purpose of undertaking or carrying out any acts or things that the Minister is authorized to undertake or carry out under this Part. Removal and appointment (2) The Minister may remove any members, directors or officers of a corporation incorporated under this section at any time and may appoint others in their stead or may appoint additional persons as members thereof. Agent of His Majesty (3) A corporation incorporated under this section is for all purposes an agent of His Majesty and it may exercise its powers only as an agent of His Majesty. Legal proceedings 31 Actions, suits or proceedings in respect of any right or obligation that a corporation incorporated under section 30 acquires or incurs on behalf of His Majesty, whether in its name or in the name of His Majesty, may be brought or taken by or against the corporation in the name of the corporation in any court that would have jurisdiction if the corporation were not an agent of His Majesty. Audit 32 The accounts of a corporation incorporated under section 30 shall be audited by the Auditor General of Canada. Minister may contract with corporation 32.1 (1) Notwithstanding that a corporation is an agent of His Majesty, the Minister may, on behalf of His Majesty, enter into a contract under this Part with the corporation as if it were not an agent of His Majesty. Contract with person to act as agent of His Majesty (2) The Minister may, with the approval of the Governor in Council, enter into a contract with a person authorizing that person to act, under the control and direction of the Minister, as an agent of His Majesty, for any of the purposes for which the Minister is authorized to act on behalf of His Majesty under this Part. 324 Section 33 of the Act is replaced by the following: Regulations 33 (1) The Governor in Council may make regulations to carry out the purposes and provisions of this Part, including regulations (a) respecting the exercise of the Minister’s powers under section 15; (b) authorizing the Minister, for the purposes of national defence or national security or if faced with an emergency, to require that any person do anything, under the direction and control of the Minister, that the Minister may do under section 15; (c) fixing terms that are deemed to be expressly set out in contracts, or classes of contracts, entered into under this Part or in documents, or classes of documents, relating to such contracts and their formation; (d) respecting the provision of information in relation to the costing of contracts described in subsection 26(1); (e) respecting the procedure for conducting a competitive procurement process under section 27; and (f) respecting the meaning of urgent operational requirement , sensitive technology and government entity for the purposes of section 28. Regulations — certain provisions (2) The Governor in Council may, on the recommendation of the Minister with the concurrence of the Minister of Finance, make regulations (a) respecting the loans that may be made, the guarantees that may be given and the loan insurance and credit insurance that may be provided under paragraph 15.1(1)(a) or (c); (b) specifying the circumstances in which and the manner in which the Minister may exercise the powers set out in paragraph 15.1(1)(e); and (c) providing for any other purpose for which an amount may be paid out of the Consolidated Revenue Fund under subsection 17(1). Orders (3) The Governor in Council may make orders to carry out the purposes and provisions of this Part. Inconsistency or conflict (4) Nothing in paragraph (1)(c) precludes the application of regulations made under section 42 of the Financial Administration Act to contracts entered into under this Part. However, regulations made under paragraph (1)(c) prevail over regulations made under that section 42 to the extent of any inconsistency or conflict. 325 The Act is amended by adding the following after section 33: Regulations — administrative monetary penalties 33.1 (1) The Governor in Council may make regulations establishing an administrative monetary penalties scheme for the purpose of promoting compliance with respect to the regulations made under paragraph 33(1)(b) or (d), including regulations (a) respecting appeals of any orders or decisions in proceedings relating to the scheme; and (b) in relation to the recovery, as a debt, of unpaid penalties and any additional penalty to be paid in respect of those unpaid penalties. Request for review (2) The regulations shall provide a right to request a review by the Minister of any acts or omissions that constitute an alleged violation or the amount of a penalty. Maximum penalty (3) The maximum penalty in respect of a violation is $2,000,000. Offence or violation (4) If an act or omission can be proceeded with as a violation under a regulation made under subsection (1) or as an offence under this Act, proceeding in one manner precludes proceeding in the other. 326 The Act is amended by adding the following after section 36: Staff Minister’s functions dischargeable by persons deputed by Minister 36. 1 The Minister may authorize any person, on behalf and under the control and direction of the Minister, to do any act or thing or to exercise any power that the Minister may do or exercise under this Part. Advisers and advisory committees 36.2 (1) The Governor in Council may appoint advisers and establish advisory committees or other boards to advise and aid the Minister in exercising the powers and performing the duties and functions under this Part and may provide for their membership, duties, functions and operation. Remuneration (2) The Governor in Council may fix the remuneration of persons appointed under this section for the performance of their duties and functions. Reimbursement (3) The Minister may determine whether advisers, members of a committee or of a board are to be reimbursed for the travel, living and other expenses incurred in the performance of their duties and functions while absent from their ordinary place of residence. 327 Subsection 45(2) of the Act is replaced by the following: Other offences (2) Every person who contravenes any other provision of this Act, with the exception of section 27 , or any provision of the regulations is guilty of an offence punishable on summary conviction and liable to a fine of not more than $25,000 or to imprisonment for a term of not more than 12 months, or to both. 328 The schedule to the Act is amended by replacing every reference to “ Defence Production Act ” with a reference to “ Defence and National Security Production and Procurement Act ”. Transitional Provisions Definitions 329 The following definitions apply in sections 330 to 332 . Act  means the Defence and National Security Production and Procurement Act . ( Loi ) commencement day  means the day on which section 323 comes into force. ( date de référence ) designated Minister  means the Minister designated under section 3 of the Defence Investment Agency Act.  ( ministre désigné ) Powers, duties and functions — sections 30 and 32.1 330 For greater certainty, the designated Minister is, as of the commencement day, the Minister who may exercise or perform any powers, duties and functions under sections 30 and 32.1 of the Act, as it reads on that day. Defence Construction (1951) Limited 331 The incorporation of Defence Construction (1951) Limited is deemed to have been procured under section 30 of the Act, as it reads on the commencement day. Contracts 332 Any contract entered into with Defence Construction (1951) Limited by the Minister of Public Works and Government Service prior to the commencement day is deemed to have been entered into by the designated Minister. R.S., c. A- 1 Consequential Amendments to the Access to Information Act 333 Schedule II to the Access to Information Act is amended by striking out the reference to Defence Production Act Loi sur la production de défence and the corresponding reference to “section 30”. 334 Schedule II to the Act is amended by adding, in alphabetical order, a reference to Defence and National Security Production and Procurement Act Loi sur la production et l’approvisionnement pour la défense et la sécurité nationale and a corresponding reference to “section 5”. Terminology Changes Replacement of “ Defence Production Act ” 335 Every reference to “ Defence Production Act ” is replaced by a reference to “ Defence and National Security Production and Procurement Act ” in the following provisions: (a) in the Export Permits Regulations , (i) the definition DPA controlled goods in section 1, and (ii) clauses 3(3)(b)(i)(A) and (B) and subparagraph 3(3)(b)(ii); (b) the definition Act in section 1 of the Controlled Goods Regulations ; and (c) in the Shipment by Post of Certain Prohibited Firearms and Prohibited Devices by Certain Businesses Regulations , (i) subsection 2(2), (ii) subsection 2.1(2), and (iii) subsection 2.2(2). Other references to Defence Production Act 336 Unless the context requires otherwise, every reference to the Defence Production Act in any provision of an Act of Parliament or of a statutory instrument , as defined in subsection 2(1) of the Statutory Instruments Act , is to be read as a reference to the Defence and National Security Production and Procurement Act . Review and Report by Minister Review 337 (1) The Minister designated under section 3 of the Defence Investment Agency Act must undertake a review of the operation of the amendments to the Defence and National Security Production and Procurement Act made by this Subdivision within three years after the day on which this subsection comes into force. Report (2) The Minister must cause a report on the review to be laid before each House of Parliament as soon as feasible after the report is completed. Coming into Force Order in council 338 The provisions of this Division come into force on a day or days to be fixed by order of the Governor in Council. DIVISION 17 1996, c. 10 Canada Transportation Act Amendments to the Act 339 Subsection 85.01(2) of the Canada Transportation Act is replaced by the following: Period to communicate decision (2) A carrier, on receipt of a written request to deal with a claim, must communicate to the claimant its decision on the claim within 30 days after the day on which the carrier received the request. 340 Sections 85.02 and 85.03 of the Act are repealed. 341 (1) The portion of subsection 85.04(1) of the Act before paragraph (a) is replaced by the following: Complaints related to tariffs 85.04 (1) A person may file a complaint in writing with the Minister if (2) Subsection 85.04(1) of the Act is amended by striking out “and” at the end of paragraph (c), by adding “and” at the end of paragraph (d) and by adding the following after paragraph (d): (e) the person does not have a proceeding before, and has not obtained a final decision from, a court of competent jurisdiction in respect of the failure referred to in paragraph (a). (3) The portion of subsection 85.04(2) of the Act before paragraph (b) is replaced by the following: Refusal to deal with complaint (2) The Minister may refuse to deal with a complaint or, at any time, cease dealing with it, if the Minister is of the opinion that (a) any of the conditions set out in subsection (1) has not been met; 342 Sections 85.05 and 85.06 of the Act are replaced by the following: Mediation 85.05 (1) If the Minister does not refuse under subsection 85.04(2) to deal with a complaint, the Minister must offer to mediate the complaint and, if the parties consent , start the mediation no later than the 30th day after the day on which the complaint is filed. Enforcement (2) An agreement that is reached as a result of mediation may be made an order of the Federal Court or of any superior court, in which case it is enforceable in the same manner as such an order. Decision on complaint 85. 06 If no agreement is reached as a result of mediation and the Minister does not cease dealing with the complaint under subsection 85.04(2), the Minister must , no later than the 90th day after the day on which the complaint is filed , and based on the information provided by the complainant and the carrier, (a) make an order under subsection 85.07(1); or (b) make an order dismissing the complaint. 343 (1) The portion of subsection 85.07(1) of the Act before paragraph (a) is replaced by the following: Order related to tariffs 85.07 (1) If the Minister finds that the carrier that is the subject of the complaint has failed to apply a fare, rate, charge or term or condition of carriage applicable to the air service it offers that is set out in its tariffs, the Minister may order the carrier to (2) Subsection 85.07(3) of the Act is replaced by the following: Enforcement (3) An order made under subsection (1) may be made an order of the Federal Court or of any superior court, in which case it is enforceable in the same manner as such an order. 344 Section 85.08 of the Act is replaced by the following: Prior decisions to be taken into account 85. 08 In dealing with a complaint in respect of a flight, the Minister must, with respect to the issue of whether a flight delay, flight cancellation or denial of boarding is within a carrier’s control, is within a carrier’s control but is required for safety reasons or is outside a carrier’s control, take into account any prior decision on that issue that is contained in an order made in respect of that flight by any person who resolved a complaint under this Part . 345 Section 85.09 of the Act is repealed. 346 Sections 85.1 to 85.13 of the Act are replaced by the following: Payment of compensation or refund 85. 09 A carrier must pay any compensation or refund that it is required to pay under an agreement reached as a result of mediation under section 85.05, or under an order made under subsection 85.07(1), within 30 days after the day on which the agreement is reached or the order is made. 347 Sections 85.14 and 85.15 of the Act are replaced by the following: Publication — order or summary of order 85.14 (1) For each order made under paragraph 85.06(b) or subsection 85.07(1) , the Minister must make public (a) the number of the flight to which the order relates; (b) the date of departure of the flight that is indicated on the complainant’s ticket; (c) any decision contained in the order with respect to the issue of whether any flight delay, flight cancellation or denial of boarding was within the carrier’s control, was within the carrier’s control but was required for safety reasons or was outside the carrier’s control; and (d) a statement as to whether or not the carrier was ordered to provide compensation or a refund as set out in the carrier’s tariffs or compensation for expenses incurred. Exception (2) The Minister may, at the request of a complainant or carrier, decide to keep confidential any part of the order, other than the information referred to in subsection (1). Annual reporting 85. 15 Each year , the Minister must make public the number and nature of the complaints filed under subsection 85.04(1), the names of the carriers against whom the complaints were made, the number of complaints for which an order was made under subsection 85.07(1) and the systemic trends observed. 348 (1) Subsection 85.16(1) of the Act is replaced by the following: Fees and charges 85.16 (1) The Minister may establish fees or charges for the purpose of recovering all or a portion of the costs that the Minister determines to be related to the process of dealing with complaints — other than complaints disposed of under subsection 85.04(2) — under sections 85.05 to 85.08 . (2) Subsections 85.16(3) and (4) of the Act are replaced by the following: Consultation (3) Before establishing fees or charges, the Minister must consult with any persons or organizations that the Minister considers to be interested in the matter. Publication (4) The Minister must publish the fees and charges on a website . (3) Subsection 85.16(6) of the Act is replaced by the following: Spending authority (6) The Minister — or the Agency, if it is required under section 85.17 to administer sections 85.04 to 85.14 — may spend the amounts obtained under this section in the fiscal year in which they are paid or in the next fiscal year. 349 The Act is amended by adding the following after section 85.16: Administration by Agency 85.17 (1) The Minister may, by order, require the Agency to administer sections 85.04 to 85.14. If an order is made, the Agency is to exercise the powers and perform the duties and functions of the Minister under those sections in accordance with any directions that the Minister may set out in the order. Procedural aspects (2) If the Minister makes an order under subsection (1), (a) complaints filed with the Agency are deemed not to be proceedings before the Agency; and (b) sections 17, 25 and 36.1 do not apply in respect of any matter that may be dealt with under sections 85.04 to 85.08. Alternative Resolution Process for Air Travel Complaints Definitions 85. 18 The following definitions apply in sections 85.2 to 85.29. designated person  means a person designated by the Minister under subsection 85.2(1). ( personne désignée ) specified complaint  means a complaint to which an order made under subsection 85.19(1) applies. ( plainte déterminée ) Suspension of application 85.19 (1) For the purpose of having complaints resolved in accordance with sections 85.22 to 85.25, the Governor in Council may, by order, suspend the application of sections 85.04 to 85.14 with respect to complaints, or any class of complaints, that allege that a carrier failed to apply a fare, rate, charge or term or condition of carriage applicable to the air service it offers that is set out in its tariffs. Limit (2) An order made under subsection (1) may only relate to complaints that are filed on or after the day on which the order comes into force. Designation 85.2 (1) The Minister may designate a person as a person authorized to resolve specified complaints and may impose as part of the designation any conditions that the Minister considers appropriate. Published list (2) The Minister must cause a list of designated persons to be published on a website. Suspension or cancellation of designation (3) The Minister may suspend or cancel a designation at any time and may vary its conditions. Agreement or arrangement 85.21 (1) Every carrier that offers an air service to, from or within Canada must, within 90 days after the day on which an order is made under subsection 85.19(1), enter into an agreement or arrangement with a designated person for the purposes of resolving specified complaints against the carrier. Publication (2) The carrier must publish the name of the designated person on the carrier’s website. His Majesty not liable (3) His Majesty is not liable for any costs related to the agreement or arrangement. Complaints related to tariffs 85. 22 A person may file a specified complaint in writing with a designated person with whom a carrier has an agreement or arrangement if (a) the person alleges that the carrier failed to apply a fare, rate, charge or term or condition of carriage applicable to the air service it offers that is set out in its tariffs; (b) the person is adversely affected by that failure; (c) the person seeks compensation or a refund as set out in the carrier’s tariffs or compensation for expenses incurred as a result of that failure; (d) the person made a written request to the carrier to resolve the matters to which the specified complaint relates but they were not resolved within 30 days after the day on which the request was made; and (e) the person does not have a proceeding before, and has not obtained a final decision from, a court of competent jurisdiction in respect of the failure referred to in paragraph (a). Powers to resolve complaints 85.23 (1) In resolving a specified complaint, a designated person may (a) refuse to deal with the specified complaint or, at any time, cease dealing with it, if they are of the opinion that (i) any of the conditions set out in section 85.22 has not been met, (ii) it is clear on the face of the specified complaint that the carrier has complied with the obligations set out in its tariffs, or (iii) the complaint is vexatious or made in bad faith; (b) mediate the specified complaint and endorse any agreement that may result; (c) make an order dismissing the specified complaint; or (d) if they find that the carrier has failed to apply a fare, rate, charge or term or condition of carriage applicable to the air service it offers that is set out in its tariffs, order the carrier to (i) apply a fare, rate, charge or term or condition of carriage that is set out in its tariffs, and (ii) compensate the complainant for any expenses the complainant incurred as a result of the carrier’s failure. Prior decisions to be taken into account (2) Section 85.08 applies with respect to the designated person as if they were the Minister. Endorsement of mediated agreement (3) An endorsement of a mediated agreement under paragraph (1)(b) is considered to be a decision for the purposes of sections 85.24 and 85.25. Enforcement (4) An agreement endorsed under paragraph (1)(b) or an order made under paragraph (1)(d) may be made an order of the Federal Court or of any superior court, in which case it is enforceable in the same manner as such an order. Decision is binding 85. 24 A decision of a designated person on a specified complaint is binding on the complainant and the carrier. Payment of compensation or refund 85. 25 A carrier must pay any compensation or refund that it is required to pay under a decision of a designated person within 30 days after the day on which the decision is made. Information to Minister 85.26 (1) If the Minister requests information with respect to the exercise of a designated person’s powers or the performance of their duties or functions under their agreement or arrangement with a carrier, the designated person must provide the information to the Minister within 30 days after the day on which the request is made. Form and manner (2) The designated person must provide the information in the form and manner specified by the Minister. Order amended or revoked 85. 27 If the Governor in Council amends or revokes an order made under subsection 85.19(1), (a) every designated person must provide the Minister with all the information and assistance necessary to permit the Minister to resolve any complaints filed with the designated person to which sections 85.04 to 85.14 apply as a result of the amendment or revocation; (b) subject to subsection 85.04(2), the Minister must resolve those complaints as soon as feasible; and (c) the deadlines set out in subsection 85.05(1) and section 85.06 do not apply in respect of those complaints. Suspension or cancellation of designation 85.28 (1) If a person’s designation under section 85.2 is suspended, the person is not authorized to exercise any of the powers set out in subsection 85.23(1). Consequences of cancellation (2) If a person’s designation under section 85.2 is cancelled, any carrier that had an agreement or arrangement with that person must (a) comply with subsection 85.21(1) within 90 days after the day on which the designation is cancelled; and (b) ensure that any complaints that have been filed with the person and in respect of which a decision has not yet been made are transferred to a designated person with whom the carrier has an agreement or arrangement. Carrier’s liability 85.29 (1) If the Minister makes a payment to a designated person in respect of the resolution of a specified complaint, the carrier that is the subject of the complaint is liable to the Minister for the payment and for any costs incurred in relation to it. Debt to His Majesty (2) The amounts for which the carrier is liable constitute a debt to His Majesty in right of Canada and may be recovered as such in a court of competent jurisdiction. 350 (1) The portion of subsection 86.11(1) of the Act before paragraph (a) is replaced by the following: Regulations — carrier’s obligations towards passengers 86.11 (1) The Minister may make regulations in relation to flights to, from and within Canada, including connecting flights, (2) Subsection 86.11(1) of the Act is amended by adding “and” at the end of paragraph (e), by striking out “and” at the end of paragraph (f) and by repealing paragraph (g). (3) Subsection 86.11(2) of the Act is repealed. (4) Subsection 86.11 of the Act is amended by adding the following after subsection (4): Date of ticket purchase (5) The regulations made under subsection (1) that apply in respect of a complaint filed under subsection 85.04(1) or section 85.22 are the regulations that were in force on the date of purchase of the ticket for the flight to which the complaint relates. 351 (1) Subparagraphs 177(1)(a)(i) and (ii) of the Act are replaced by the following: (i) any provision of this Act or of any regulation, order or direction made pursuant to this Act, other than a provision of a regulation made under subsection 86.11(1) , (ii) the requirements of any provision referred to in subparagraph (i), other than a requirement of a provision of a regulation made under subsection 86.11(1) , or (2) Subparagraph 177(1)(b)(ii) of the Act is replaced by the following: (ii) $25,000 — or, in the case of a violation involving a contravention of a provision of a regulation made under subsection 86.11(1), $ 1,000,000 — in the case of a corporation. (3) Subparagraph 177(1)(b)(ii) of the Act is replaced by the following: (ii) $25,000, in the case of a corporation. (4) Paragraph 177(2)(a) of the Act is replaced by the following: (a) designate as a provision or requirement the contravention of which may be proceeded with as a violation in accordance with sections 179 and 180 any provision of section 51 or 51.2, any provision of any regulation made under section 50 or 51 or subsection 86.11(1) , or any requirement of section 51 or 51.2 or of any provision of such a regulation ; and (5) Subparagraph 177(2)(b)(ii) of the Act is replaced by the following: (ii) $25,000 — or, in the case of a violation involving a contravention of a provision of a regulation made under subsection 86.11(1) or a contravention of a requirement of such a provision, $1,000,000 — in the case of a corporation. (6) Section 177 of the Act is amended by adding the following after subsection (2.01): Air travel claims and complaints (2.02) The contravention of subsection 85.01(2), section 85.09, subsection 85.21(1), section 85.25 or 85.26 or paragraph 85.27(a) or 85.28(2)(a) or (b) may be proceeded with as a violation in accordance with sections 179 and 180. The maximum amount payable for each violation is $1,000,000. 352 (1) The portion of subsection 178(1) of the Act before paragraph (a) is replaced by the following: Notices of violation 178 (1) The Agency, in respect of a violation referred to in subsection 177(1), (2.1) or (3) — or the Minister, in respect of a violation referred to in subsection 177(2), (2.001), (2.01) or (2.2), other than a violation involving a contravention of a provision of a regulation made under subsection 86.11(1) or a contravention of a requirement of such a provision — may (2) Section 178 of the Act is amended by adding the following after subsection (1): Notices of violation — air travel claims and complaints (1.01) The Agency may exercise the powers set out in subsection (1) in respect of violations referred to in subsection 177(2.02). Persons who are designated as enforcement officers, whether individually or by class, are deemed to be designated under paragraph (1)(a). (3) Section 178 of the Act is amended by adding the following before subsection (2): Notices of violation — air passenger regulations (1.1) The Agency may exercise the powers set out in subsection (1) in respect of violations involving a contravention of a provision of a regulation made under subsection 86.11(1) or a contravention of a requirement of such a provision. Persons who are designated as enforcement officers, whether individually or by class, are deemed to be designated under paragraph (1)(a). 353 Section 180.1 of the Act is amended by adding the following after subsection (2): Air travel claims and complaints — compliance agreement (2.1) A person who has been served with a notice of violation that identifies a violation referred to in subsection 177(2.02) may, in lieu of the options referred to in subsection (1), request, within the time and in the manner set out in the notice, to enter into a compliance agreement with the Agency for the purpose of ensuring the person’s compliance with the provision to which the violation relates. Transitional Provisions Interpretation Definition of Act 354 (1) In this section and sections 355 to 362 , Act means the Canada Transportation Act . Words and expressions (2) Unless the context requires otherwise, words and expressions used in sections 355 to 362 have the same meaning as in the Act. Backlog of Air Travel Complaints Suspension of application 355 (1) For the purpose of having complaints resolved in accordance with sections 357 to 359 , the Governor in Council may, by order, suspend the application of subsection 85.04(2) and sections 85.05 to 85.14 of the Act with respect to complaints that are filed with the Agency under subsection 85.04(1) of the Act before the day on which the order comes into force and of which no complaint resolution officer is seized before that day. Clarification (2) For greater certainty, (a) an order may apply to a class of complaints; (b) the scope of an order is limited to complaints that are filed before the day on which subsection 341 (1) comes into force; and (c) an order may apply to a complaint referred to in section 473 of the Budget Implementation Act, 2023, No. 1 . Contract 356 The Minister, or the Agency, if directed by the Minister, may enter into a contract with a person to resolve complaints to which an order made under subsection 355 (1) applies. Powers to resolve complaints 357 (1) In resolving a complaint to which an order made under subsection 355 (1) applies, a person referred to in section 356 may (a) refuse to deal with the complaint, or, at any time, cease dealing with it, if they are of the opinion that (i) any of the conditions set out in subsection 85.04(1) of the Act has not been met, (ii) it is clear on the face of the complaint that the carrier has complied with the obligations set out in its tariffs, or (iii) the complaint is vexatious or made in bad faith; (b) mediate the complaint and endorse any agreement that may result; (c) make an order dismissing the complaint; or (d) if they find that the carrier has failed to apply a fare, rate, charge or term or condition of carriage applicable to the air service it offers that is set out in its tariffs, order the carrier to (i) apply a fare, rate, charge or term or condition of carriage that is set out in its tariffs, and (ii) compensate the complainant for any expenses the complainant incurred as a result of the carrier’s failure. Prior decisions to be taken into account (2) In dealing with a complaint in respect of a flight, a person referred to in section 356 must, with respect to the issue of whether a flight delay, flight cancellation or denial of boarding is within a carrier’s control, is within a carrier’s control but is required for safety reasons or is outside a carrier’s control, take into account any prior decision on that issue that is contained in an order made in respect of that flight by any person who resolved a complaint under subsection (1) or under Part II of the Act. Endorsement of mediated agreement (3) An endorsement of a mediated agreement under paragraph (1)(b) is considered to be a decision for the purposes of sections 358 and 359 . Enforcement (4) An agreement endorsed under paragraph (1)(b) or an order made under paragraph (1)(d) may be made an order of the Federal Court or of any superior court, in which case it is enforceable in the same manner as such an order. Decision is binding 358 A decision made under subsection 357 (1) is binding on the complainant and the carrier. Payment of compensation or refund 359 (1) A carrier must pay any compensation or refund that it is required to pay under a decision made under subsection 357 (1) within 30 days after the day on which the decision is made. Violation (2) The contravention of subsection (1) may be proceeded with as a violation in accordance with sections 179 and 180 of the Act. The maximum amount payable for the violation is $1,000,000. Enforcement powers (3) The Agency may exercise the powers set out in subsection 178(1) of the Act in respect of the violation. Persons who are designated as enforcement officers, whether individually or by class, are deemed to be designated under paragraph 178(1)(a) of the Act. Application of Act (4) Sections 178.1 to 180.7, 181 and 181.1 of the Act apply to proceedings for the violation, with any necessary modifications, and every reference to the Minister in sections 180.3 to 180.7 of the Act is to be read as a reference to the Agency or to a person designated by the Agency. Compliance agreements (5) Despite subsection 180.1(1) of the Act, a carrier that has been served with a notice of violation in respect of the violation may request, within the time and in the manner set out in the notice, to enter into a compliance agreement with the Agency for the purpose of ensuring the carrier’s compliance with subsection (1). Other Measures Continued resolution of complaint 360 Sections 85.02 to 85.16 of the Act, as they read immediately before the day on which subsection 341 (1) comes into force, continue to apply in respect of any complaint filed before that day under subsection 85.04(1) of the Act, except as otherwise provided in an order made under subsection 355 (1). Annual report 361 If an order is made under subsection 355 (1), the Agency must indicate, as part of its annual report, the number of complaints for which an order was made under paragraph 357 (1)(d) and the systemic trends observed in relation to the resolution of complaints by persons referred to in section 356 . Applicable regulations 362 Subsection 86.11(5) of the Act, as enacted by subsection 350 (4), does not apply in respect of complaints that are filed under subsection 85.04(1) of the Act before the day on which subsection 350 (4) comes into force. Coordinating Amendments 2023, c. 26 363 (1) In subsections (2) to (7), other Act means the Budget Implementation Act, 2023, No. 1. (2) On the first day on which both section 461 of the other Act and section 344 of this Act are in force, section 85.08 of the Canada Transportation Act is replaced by the following: Prior decisions to be taken into account 85. 08 In dealing with a complaint in respect of a flight, the Minister must, with respect to the issue of whether an exception specified by regulations made under paragraph 86.11(1)(b.1) applies, take into account any prior decision on that issue that is contained in an order made in respect of that flight by any person who resolved a complaint under this Part. (3) If section 462 of the other Act comes into force before section 347 of this Act, then that section 347 is amended by replacing the paragraph 85.14(1)(c) that it enacts with the following: (c) any decision contained in the order with respect to the issue of whether an exception specified by regulations made under paragraph 86.11(1)(b.1) applies; and (4) If section 347 of this Act comes into force before section 462 of the other Act, then that section 462 is replaced with the following: 462 Paragraph 85.14(1)(c) of the Act is replaced by the following: (c) any decision contained in the order with respect to the issue of whether an exception specified by regulations made under paragraph 86.11(1)(b.1) applies; and (5) If section 462 of the other Act comes into force on the same day as section 347 of this Act, then that section 462 is deemed to come into force first and subsection (3) applies as a consequence. (6) If section 463 of the other Act comes into force before section 348 of this Act, then that section 348 is repealed. (7) If section 463 of the other Act comes into force on the same day as section 348 of this Act, then that section 348 is deemed to have come into force first. Coming into Force Order in council 364 (1) Sections 339 and 340 , subsections 341 (1) and (3), sections 342 to 344 and 346 to 349 , subsections 350 (4), 351 (6) and 352 (2) and section 353 come into force on a day to be fixed by order of the Governor in Council. Order in council (2) Subsections 350 (1) to (3), 351 (1) and (3) to (5) and 352 (1) and (3) come into force on a day to be fixed by order of the Governor in Council.